Which of the following is true?

Question

Quizplus · Accepted Answer

Firms in perfectly competitive markets earn zero economic profits in the long run due to the ease of entry for new firms and the existence of many substitutes for the same product. In contrast, firms in monopolistically competitive markets may earn positive economic profits in the long run due to product differentiation and some ability to influence price, and firms in oligopoly markets may have varying levels of profits due to their interdependence and potentially collusive behavior. Choice A is not true, as firms in monopolistically competitive and oligopoly markets may earn economic profits. Choice D is also not true, as firms in oligopoly markets may have varying levels of profits due to their interdependence and potentially collusive behavior.

Which of the Following Is True