Monopolistic Competition- Short Run and Long Run- Micro 4.4

The video tutorial by Mr. Clifford introduces the concept of monopolistic competition, highlighting its similarities and differences with monopoly and perfect competition. It explains that firms in monopolistic competition are price makers with differentiated products, leading to no economic profit in the long run due to low entry barriers. The tutorial covers the short run, where firms can make a profit, and the transition to the long run, where increased competition leads to a decrease in demand and no economic profit.

How does the demand curve for a monopolistically competitive firm differ from that of a perfectly competitive firm?

What happens to economic profit in the long run for firms in monopolistic competition?