Which of the following statements accurately describe the relationship between price, average total cost, and economic profit in a monopolistically competitive market? Select all that apply.

In a monopolistically competitive market, firms can set prices above their average total costs, which allows them to earn economic profits in the short run. This occurs because each firm sells a product that is slightly different from its competitors, giving them some control over their pricing. However, in the long run, new firms may enter the market attracted by these profits, which increases competition and drives down prices. For example, if a coffee shop is making a profit by selling specialty drinks, other coffee shops might open nearby, leading to more choices for consumers and lower prices overall. Ultimately, in the long run, firms may only earn normal profits, where price equals average total cost.