Asked by
anduamlak yalew
on Dec 17, 2024
Verified
In which of the following market structures can firms earn economic profits in the long run?
A) Perfect competition only
B) Monopolistic competition only
C) Monopoly only
D) Monopolistic competition and monopoly
Economic Profits
The difference between total revenue and total costs, including both explicit and implicit costs, indicating the financial gain exceeding all costs.
Monopoly
A market structure characterized by a single seller dominating the market, with no close substitutes for the product, giving the seller considerable power over prices.
- Discuss the implications of free entry and exit in monopolistically competitive markets on economic profits.
Verified Answer
RW
Learning Objectives
- Discuss the implications of free entry and exit in monopolistically competitive markets on economic profits.
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