In the long run, firms under monopoly or oligopoly must only earn normal profits

Question

In the long run, firms under monopoly or oligopoly must only earn normal profits. State true or false.

Options:

A . True

B . False

C . horizontal

D . none of these

Answer: Option B
:
B
Monopolies and oligopolies have the freedom to adjust prices and hence, their long-run equilibrium profits are non-zero.

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