A monopolistic competitor is like a monopolist in that:

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A monopolistic competitor, like a monopolist, faces a downward-sloping demand curve. However, unlike a monopolist, a monopolistic competitor typically earns only a small amount of economic profit in the long run, rather than zero economic profit. The marginal revenue curve typically lies below the average revenue curve for a monopolistic competitor. Finally, a monopolistic competitor may charge a price above or below its marginal cost, depending on its level of market power and its desired level of profit.

A Monopolistic Competitor Is Like a Monopolist in That