If firms in monopolistic competition are making economic profits,eventually

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If firms in monopolistic competition are making economic profits, it indicates that there is an excess demand for their products in the market. This will attract new firms to enter the market and compete for a share of profits. As new firms enter and the competition increases, the demand curve for each firm's product will shift leftward, leading to a decrease in the price and economic profit. Eventually, in the long run, economic profits will be driven to zero as the number of firms increases and the market becomes more competitive. Therefore, new firms will enter the industry in response to economic profits.

If Firms in Monopolistic Competition Are Making Economic Profits,eventually