In which market is economic profit driven to zero in the long run

Question

Quizplus · Accepted Answer

In the long-run, monopolistically competitive markets will have economic profit driven to zero due to entry and exit of firms in response to short-run profits and losses. In contrast, monopolies and oligopolies can maintain economic profits in the long run by various means such as barriers to entry and interdependence among firms. Duopoly might or might not face zero economic profits depending on the market conditions and the strategies pursued by the firms.

In Which Market Is Economic Profit Driven to Zero in the Long