Individual sellers cannot earn excess profit over the long run in:

Question

Quizplus · Accepted Answer

In pure competition and monopolistic competition, the presence of many competitors and the ease of entry into the market prevent individual sellers from earning excess profits over the long run. In pure competition, products are homogenous and sellers are price takers, leading to zero economic profit in the long run. In monopolistic competition, the differentiation of products allows for some short-term profits, but the ease of entry for new competitors erodes these profits over time.

Individual Sellers Cannot Earn Excess Profit Over the Long Run