monopolistically competitive firms are likely to have lower prices in the long run than will occur in a perfectly competitive industry producing similar goods.
Long-term economic gains or losses in monopolistic competition will be removed by entry or leave, leaving businesses with no economic gains.
There will be some excess capacity in a monopolistically competitive business; this may be seen as the price paid for the variety of products that this market structure brings about.
Businesses in monopolistic competition continue to produce at a level where marginal cost and marginal income are equal over the long term. But when more businesses enter the market, the demand curve will have moved to the left.
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