Answer:
In the long run, a company can remain profitable only if it has lower costs than the average company in the market.
In a competitive market, firms must compete on price to sell their products, and they must earn a profit in order to survive in the long run. However, if a firm has higher costs than its competitors, it will have to charge a higher price to cover those costs, and it may not be able to compete effectively. As a result, firms that are able to reduce their costs and operate efficiently are more likely to remain profitable in the long run.
While market demand and barriers to entry can also affect a firm's profitability, they are not the sole determinant. For example, high market demand can create opportunities for profits, but if a firm cannot produce and sell its products at a lower cost than its competitors, it may still struggle to remain profitable. Similarly, while barriers to entry can limit competition and allow firms to earn higher profits in the short run, they do not guarantee long-term profitability if the firm cannot operate efficiently and reduce costs.