Suppose that a monopolistically competitive market is in its long-run equilibrium. If the market demand curve shifts to the right due to changes in consumer preferences

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In the short run, firms can increase production and charge higher prices due to the shift in demand, which allows them to earn positive economic profits. However, in the long run, new firms will enter the market, increasing competition and driving down profits to zero. The average costs of production may or may not increase, depending on the specific circumstances of the market.

Suppose That a Monopolistically Competitive Market Is in Its Long-Run