The market structure where economic profits are not possible in the long run is:
A) oligopoly.
B) monopoly.
C) pure competition.
D) all of the above.

Question

Quizplus · Accepted Answer

In a pure competition market structure, there are many sellers and buyers, and no single entity can influence the market price. This leads to only normal profits in the long run, as any economic profit would attract new entrants, increasing supply and driving prices down until only normal profits are possible.

The Market Structure Where Economic Profits Are Not Possible in the Long