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Final answer:

Monopolistic competitors can make profits in the short run due to product differentiation, but in the long run, firms in monopolistic competition tend to earn zero economic profit.


Explanation:

Monopolistic competitors can make an economic profit in the short run due to product differentiation and the ability to charge higher prices based on perceived uniqueness. However, in the long run, the presence of entry and exit of firms in the market will drive these companies toward a zero economic profit outcome.


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