In a market with barriers to entry:
A)firms will earn zero economic profit in the long run.
B)economic profit will not fall to zero in the long run.
C)prices will direct productive resources toward underserved markets.
D)the implications of Adam Smith's theory of the invisible hand can be expected to hold.

Question

Quizplus · Accepted Answer

If firms cannot freely enter a market, economic profit will not be driven to zero in the long run.

In a Market with Barriers to Entry