(1) Assume that firms in the short-run are earning above-normal profits. Explain what will happen to these profits in the long-run for the following markets:
(i) Pure monopoly
(iii) Monopolistic competition
(iv) Perfect competition
In perfect competition, firms will only make normal profit or zero economic profit in the longer run as other firms can freely enter the market.
For monopoly, profit is super normal or above normal ...
Explain what will happen to these profits in the long-run for the following.