Describe the difference in economic profit between a competitive firm and a monopolist in both the...

Describe the difference in economic profit between a competitive firm and a monopolist in both the short and long run. Which should take longer to reach the long-run equilibrium?

In the short run, both monopolists and competitive firms ______(Can/Cannot) earn positive economic profits. In the long run,__________(neither/monopolists, but not competitive/both/ competitive but not monopolists) can earn a positive economic profit.

True or False: The adjustment to long-run equilibrium takes the same amount of time for monopolies and competitive industries.

Expert Solution

Rahul Sunny answered 2 years ago

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