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In short run the price is greater than the average total cost and therefore the monopolistically competitive firm is making a positive profit. But there

In short run the price is greater than the average total cost and therefore the monopolistically competitive firm is making a positive profit. But there is no entry barrier in the monopolistically competitive market. Hence new firms enter the market in longer and in order to Grab more profit. As a result the cost of production will increase and cost curve will shift until it will tangent with the demand curve. Hence the phone can make only normal profit because price is equal to the average total cost

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