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If a firm earns $9,000 in long-run, then what type of market structure does this firm belong to?

Perfect Competition

Monopolistic Competition

Pure Monopolist

All of the above

User Lobianco
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1 Answer

4 votes

Answer: Pure monopolist

Step-by-step explanation:

For perfect competition and monopolistic competition, the firms can't experience long run profit as they can only make profit in the short run. This is because due to the fact that there are several number of firms that are producing identical products, the profit are thereby eliminated in the long run.

A pure monopolist is the only seller of a particular good in the market and therefore they can make long run profit.

User Rlbond
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