In the long run, which of the following most likely results in positive economic profits?
A)Competition
B)Pure competition
C)Monopoly
D)Monopolistic competition
E)A price-taker

Question

Quizplus · Accepted Answer

A monopoly is the only market structure that allows a firm to have control over the price of its product, allowing it to earn positive economic profits in the long run. In pure competition, firms are price-takers and earn zero economic profits in the long run. Monopolistic competition and being a price-taker also lead to zero economic profits in the long run.

In the Long Run, Which of the Following Most Likely