A monopolistic competitor is like a monopolist in the long run in that when economic profits are

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A monopolistic competitor, like a monopolist, earns positive economic profits when it has market power and can set prices above marginal cost. Therefore, when economic profits are greater than zero, the monopolistic competitor behaves like a monopolist in terms of output decisions (i.e. producing at a level where price exceeds marginal cost).

A Monopolistic Competitor Is Like a Monopolist in the Long