A purely competitive firm is precluded from making economic profits in the long run because:

A) it is a "price taker."
B) its demand curve is perfectly elastic.
C) of unimpeded entry to the industry.
D) it produces a differentiated product.

Economic Profits

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, representing the excess return over the firm's opportunity costs.

Purely Competitive Firm

A business that operates in a market with many buyers and sellers, where each has a negligible impact on price and product homogeneity prevails.

Unimpeded Entry

A situation in a market where there are no obstacles preventing new competitors from entering and competing.