Which of the following statements is true in the short run?

Question

Quizplus · Accepted Answer

In the short run, identical firms can enjoy positive economic profits due to barriers to entry or a temporary decrease in the supply of inputs. However, in the long run, other firms may enter the market or the supply of inputs may increase, leading to lower profits or even losses. Both B and C are not true in the short run because firms' supply curves depend on their production costs, which may not be identical between firms. D is not true because nonidentical firms can also enjoy positive economic profits in the short run.

Which of the Following Statements Is True in the Short