Firms X, Y and Z are private firms that maximise profit. X is active in a perfectly competitive industry, Y operates in 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 is a price maker.