Over the long run, an individual seller's costs and price are as low as they can get, and there is no excess profit in:
A) oligopoly.
B) monopoly.
C) pure competition.
D) monopolistic competition.

Question

Quizplus · Accepted Answer

In a pure competition market structure, there are many sellers and buyers, and no single seller has significant market power to influence prices. Over time, competition drives prices down to the level of the lowest possible costs, eliminating excess profits for individual sellers. This is because any attempt to charge more than the market price would lead customers to buy from other sellers, and charging less would not be sustainable in the long run.

Over the Long Run, an Individual Seller's Costs and Price