In which market structures is the firm able to earn long-run economic profits?

Question

Quizplus · Accepted Answer

In perfect competition, firms are unable to earn long-run profits due to a large number of competitors and ease of entry and exit from the market. In monopolistic competition, firms may initially earn profits through product differentiation, but in the long-run, other firms can easily imitate their product, leading to competition and lower profits. In contrast, in oligopoly and monopoly, firms have higher barriers to entry, which reduces competition and allows for the potential to earn long-run profits.

In Which Market Structures Is the Firm Able to Earn