In which of the following markets does a firm have power to make super normal profits both in the short run and long run?

Answer Details

A firm has the power to make super normal profits both in the short run and long run in a monopoly market. In a monopoly market, there is only one supplier of a product or service, which gives the firm complete control over the price and quantity supplied. The firm can set a price above the marginal cost of production, allowing it to earn super normal profits. In the long run, barriers to entry prevent other firms from entering the market, allowing the monopoly firm to continue earning super normal profits. Therefore, the correct answer is Monopoly.