Economic Profit in the Long Run Is

question 156

Multiple Choice

Economic profit in the long run is

• A) possible for both a pure monopoly and a pure competitor.
• B) possible for a pure monopoly but not for a pure competitor.
• C) impossible for both a pure monopolist and a pure competitor.
• D) only possible when barriers to entry are nonexistent.

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Definitions:

Elastic Demand

A condition where the quantity demanded of a good or service changes significantly as its price changes.

Students

Individuals who are engaged in the pursuit of education, typically at schools, colleges, or universities.

Movie Theater

A venue equipped for projecting films for public entertainment, where audiences can watch movies on a large screen.

Highly Profitable

Highly profitable describes businesses or investments that generate earnings significantly above the average for their sector or the market as a whole.