The existing firm to earn positive economic profit

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If there are barriers to entry into a market, it is possible for the existing firm to earn positive economic profit. All of the following explain this concept except; 1. it is possible for a firm in this situation to charge any price it wants and thus preclude anyone else from entering 2. competition does not erode profits the way it would under perfect competition 3. new firms cannot take advantage of the profits 4. resource immobility.

Reference no: EM13770751

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