Recall the application regarding opening a Dunkin' Donuts shop and the small barriers to entering the donut business.What should an owner of a Dunkin' Donut shop expect in a monopolistically competitive market?

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In a monopolistically competitive market, firms have some market power but face competition from other firms. This means that they can set prices above marginal cost but will still face competition for consumers. As a result, firms in a monopolistically competitive market can expect to earn positive economic profits in the short run, but these profits will be competed away in the long run.

Recall the Application Regarding Opening a Dunkin' Donuts Shop and the Small