Answer:
The economic profits earned by monopolistically competitive firms will be eliminated in the long run.
Step-by-step explanation:
The elimination of the economic profits in the long run also happens to economic losses in the long run. They are eliminated by the entry and exit of firms. Thus, in the long run, all monopolistic competitive firms have zero economic profits and losses in total. However, in the short run, these firms maximize their profits and minimize their economic losses because they can produce where MR = MC (Marginal Revenue and Marginal Cost are equal). A monopolistic competitive industry combines elements of monopolistic and competitive markets.