If some firms are making a profit in monopolistic competition,in the long run

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In monopolistic competition, firms have some degree of market power due to product differentiation. As a result, firms can charge a slightly higher price than their marginal cost in the short run, making a profit. However, this attracts new firms to enter the market, increasing the industry supply curve and leading to a decrease in the market price. In the long run, firms will only make normal profits (where price equals average total cost), and the industry supply curve will be tangent to the demand curve at the profit-maximizing output level, resulting in a lower market price. Therefore, the industry supply curve will increase, and the market price will fall in the long run.

If Some Firms Are Making a Profit in Monopolistic Competition,in