Why is it that firms can earn profits in the long run in mon

Why is it that firms can earn profits in the long run in monopoly and oligopoly but not in monopolistic competition and perfect competition? What can firms do in monopolistic competition or perfect competition to make the short run last as long as possible since they can only make profits in the short run? Have you observed any firms employ such tactics? Can you give some examples? Please answer clearly with your own words. Do not write down on notes and take a picture.

Solution

In monopolistic rivalry and immaculate rivalry, there are low hindrances to passage and exit.

At the point when monopolistic aggressive and flawless focused firms procure benefits in short run, more firms enter the business and benefits get isolated leaving to just ordinary benefits over the long haul.

While there are tremendous boundaries that confine section in imposing business model and oligopoly.

In monopolistic rivalry or immaculate rivalry, to make the short run keep going as far as might be feasible firms should make low benefits.