When a monopolistically competitive industry earns economic profit,the result of competition among sellers is usually that:

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In a monopolistically competitive industry, when a firm earns economic profit, it incentivizes other firms to enter the market and compete for consumers, leading to increased competition and a decrease in the market share of existing firms. As new firms enter and existing firms lose market share, economic profit decreases and eventually reaches zero in the long run. Thus, firms in the industry lose market share when there is economic profit.

When a Monopolistically Competitive Industry Earns Economic Profit,the Result of Competition