Question

Economic profit in the long run is: Group of answer choices possible for both a pure monopoly and a pure competitor. possible for a pure monopoly but not for a pure competitor. impossible for both a pure monopolist and a pure competitor. only possible when barriers to entry are nonexistent.

Answer 1

possible for a pure monopoly but not for a pure competitor

Step-by-step explanation:

The economic profits are the profits in which the firm could be earned by the market power

As we know that in the perfect competition there is a freedom for entry and exit to the markets and also in this no market power due to which its profits are zero

Therefore it should be possible for the pure monopoly, not the pure competitor

Hence, option b is correct