In the short run,monopolistically competitive firms behave like ________________,but in the long run,the profit of a firm is similar to that of ________________.

Question

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In the short run, monopolistically competitive firms can earn profits like monopolies due to product differentiation and market power. However, in the long run, new firms enter the market, driving profits down to zero, similar to perfectly competitive firms.

In the Short Run,monopolistically Competitive Firms Behave Like ________________,But in the Long