A monopolistically competitive market is like both a competitive market and a monopoly in that firms in all three market structures

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In the short run, firms in all three market structures can earn economic profits. However, in the long run, only monopolies can sustain economic profits due to barriers to entry, while firms in competitive and monopolistically competitive markets typically earn zero economic profit. Monopolistically competitive firms, like monopolies, charge a price above marginal cost, but competitive firms do not.

A Monopolistically Competitive Market Is Like Both a Competitive Market