Advertisements
Advertisements
Question
Which two forms of market earn normal profit in the long run?
Options
Perfect competition and monopoly
Perfect competition and monopsony
Monopoly and monopolistic competition
Perfect competition and monopolistic competition
Advertisements
Solution
Perfect competition and monopolistic competition
Explanation:
Perfect competition allows for free entry and exit, limiting firms to normal earnings over time. Monopolistic competition has low entry barriers, making it easy for new enterprises to enter the market. As a result, market supply increases. Increased availability leads to price reductions by enterprises. Therefore, corporations can only earn typical profits in the long run.
APPEARS IN
RELATED QUESTIONS
Following is the feature of perfect competition:
Following is not the feature of perfect competition:
In monopolistic competition, there are ______.
Which among the following is a feature of monopsony market?
Pick the option which does not belong to the group.
Which of the following is the least competitive market?
Give an example of oligopoly.
State the advantage of monopolistic competition over monopoly.
Explain any four features of perfect competition.
Discuss any four differences between monopoly and monopolistic competition.
