In monopolistically competitive industry, the long-run outcome is:

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In monopolistically competitive industries, firms produce differentiated products, which allows them to have some control over the price. However, other firms also produce similar products, creating competition. In the long-run, firms can enter or exit the market, which drives the profits towards zero. Because of the competition in the industry, firms are unable to consistently earn economic profits. Therefore, the most likely long-run outcome is zero economic profit. However, firms may still earn accounting profits, which is revenue minus explicit costs, but these do not include the opportunity cost of the resources used in production.

In Monopolistically Competitive Industry, the Long-Run Outcome Is