In monopolistic competition,a firm has a limited degree of "price-making" ability.This means that the firm will:

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In monopolistic competition, firms have some degree of market power, which allows them to set prices above marginal cost in order to earn economic profits. However, this power is limited due to the presence of close substitutes and the potential for entry by new competitors. Therefore, the firm might not always earn an economic profit and might not produce at minimum average total cost.

In Monopolistic Competition,a Firm Has a Limited Degree of "Price-Making