In the short run,a monopolistically competitive firm

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In the short run, a monopolistically competitive firm may be able to differentiate its product and charge a higher price, allowing for economic profits. However, in the long run, new firms will enter the market, increasing competition and reducing the demand for the original firm's product. As a result, the firm's demand curve will shift left, causing it to lower its price to maintain sales. Ultimately, this leads to the firm producing at the minimum point of its long-run average cost curve, where it earns zero economic profits.

In the Short Run,a Monopolistically Competitive Firm