The main factor allowing excess profit over the long run in certain market structures is:
A) price taking.
B) barriers to entry.
C) product differentiation.
D) no mutual interdependence.

Question

Quizplus · Accepted Answer

Barriers to entry are the main factor allowing excess profit over the long run in certain market structures because they prevent or discourage new competitors from entering the market, thus allowing existing firms to maintain higher prices and profits.

The Main Factor Allowing Excess Profit Over the Long Run