Firms X, Y and Z are private firms aiming to maximise profit. X operates within a perfectly competitive industry, Y within a monopolistically competitive industry, and Z is the sole monopolist. Which statement is correct?
- AOnly X satisfies the condition for allocative efficiency.
- BOnly X faces no barriers to entry in the long run.
- COnly Y and Z can make a supernormal profit in the long run.
- DOnly Z has a product differentiation.