Question

Which of the following is true concerning purely competitive industries?

A. There will always be economic losses in the long run because of cut-throat competition and freedom of entry.

B. Positive economic profits will persist in the long run if consumer demand is strong and stable.

C. Firms may earn positive economic profits in the short run, but in the long run, they earn a normal profit.

D. There are positive economic profits in the long run but not in the short run.