As long as there is free entry into a market:
A)firms in that market can sustain prices above average total cost.
B)firms in that market can maintain market power.
C)economic profits are not sustainable.
D)accounting profits will be zero.

Question

Quizplus · Accepted Answer

With free entry into a market, new firms can enter and compete with the existing firms. This competition will drive down profits, making it difficult for firms to sustain long-term economic profits. In the long run, firms will only be able to earn normal profits, which are typically just enough to cover their costs. Therefore, economic profits are not sustainable in a market with free entry.

As Long as There Is Free Entry into a Market