In the long-run,firms in a monopolistically competitive industry will

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In a monopolistically competitive industry, there are many firms competing with each other by offering slightly different products. Each firm has some market power, but it is not significant enough to allow for substantial economic profits in the long run. As new firms enter the industry, each firm's demand curve will shift leftward, reducing its market share and limiting its ability to charge a higher price. Therefore, firms in a monopolistically competitive industry tend to just cover costs, including normal profits, in the long run. They cannot earn substantial economic profits consistently. Additionally, they will not seek to increase or reduce the scale of operations based solely on market conditions but can apply other strategies like innovation or branding to remain in the market.

In the Long-Run,firms in a Monopolistically Competitive Industry Will