Question: Why some firms might be able to continue to make an economic profit in the long-run?Discuss.

Task Requirement

1. Prepare between two to four pages or five hundred to thousand words (exclude the cover and reference ) document of your responses and findings based on the given question below.
2. The question b is based onFour Market Structures. Make sure you have read the chapters regarding 4 market structures in order for you to answer the question.

Perfect competition- Many firms, freedom of entry, homogeneous product, normal profit.

Monopoly- One firm dominates the market, barriers to entry, possibly supernormal profit.

Oligopoly- An industry dominated by a few firms, e.g. 5 firm concentration ratio of > 50%. Interdependence of firms

Monopolistic competition- Freedom of entry and exit, but firms have differentiated products. Likelihood of normal profits in the long term.

This is a assignment which covers 20% of overall marks. Hence appreciate if you could have a proper flow with explanations and examples