Long-run economic profits are possible in which of the following market structures?
A) Monopolistic competition
B) Oligopoly and monopoly
C) Perfect competition
D) Only monopoly

Question

Quizplus · Accepted Answer

Long-run economic profits can be possible in oligopoly and monopoly market structures where there are barriers to entry and limited competition. In monopolistic competition, firms may earn short-term profits, but in the long run, profits are eroded due to free entry and exit from the market. In perfect competition, there are no barriers to entry, and firms only earn normal profits in the long run.

Long-Run Economic Profits Are Possible in Which of the Following