Identify the market in the following list where economic profit is driven to zero in the long run:
A)oligopoly
B)monopoly
C)common resource
D)perfect competition

Question

Quizplus · Accepted Answer

In perfect competition, there are no barriers to entry and many firms producing identical products. This means that in the long run, new firms will enter the market to compete for profits, driving prices down until economic profit is zero for all firms.

Identify the Market in the Following List Where Economic Profit