In a monopolistically competitive market, if a firm's price is consistently above its average total cost, it will always achieve positive economic profit in the long run.

In a monopolistically competitive market, firms have some control over their prices because they sell products that are slightly different from one another. If a firm sets its price above its average total cost, it means that it is making more money from each sale than it spends to produce those goods. For example, if a coffee shop sells a cup of coffee for $5 and it costs $3 to make, the shop makes a profit of $2 per cup. In the long run, if this situation continues, the firm will keep earning positive economic profits, which can attract new competitors into the market. However, as more firms enter, the increased competition may eventually drive prices down, reducing profits over time.