Which of the following is true?
A) Monopolists, monopolistically competitive firms and perfectly competitive firms all earn positive economic profits in the long run.
B) Monopolists, monopolistically competitive firms and perfectly competitive firms all earn zero economic profits in the long run.
C) Only monopolists and monopolistically competitive firms, but not perfectly competitive firms, can earn positive economic profits in the long run.
D) Monopolists, monopolistically competitive firms and perfectly competitive firms can potentially all earn positive economic profits in the short run.
E) Only monopolists and monopolistically competitive firms, but not perfectly competitive firms, can earn positive economic profits in the short run.
Correct Answer:
Verified
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