Economic profit in the long run is
A)possible for both a pure monopoly and a pure competitor.
B)possible for a pure monopoly but not for a pure competitor.
C)impossible for both a pure monopolist and a pure competitor.
D)only possible when barriers to entry are nonexistent.

Question

Quizplus · Accepted Answer

In the long run, a pure monopoly can maintain economic profits due to barriers to entry that prevent competitors from entering the market. In contrast, in a purely competitive market, the absence of barriers to entry and the presence of many firms ensure that economic profits are competed away, leading to normal profits in the long run.

Economic Profit in the Long Run Is