In the long run in a monopolistically competitive market, a firm will, in theory,

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In the long run, firms in monopolistically competitive markets will continue to advertise and differentiate their products to maintain their market share. This leads to a situation where there is no perfect competition, but there is also no pure monopoly. As a result, firms will only earn normal profits and break even in the long run. This is because any economic profits earned by the firm will attract new firms to enter the market, which will increase competition and reduce profits back to normal levels. Conversely, if a firm is making losses, some firms may exit the market, reducing competition and allowing the remaining firms to charge higher prices and increase profits back to normal levels.

In the Long Run in a Monopolistically Competitive Market, a Firm