Answer :
In the short run, a firm will earn a positive economic profit if the market price is less than the average total cost.
By producing the amount where marginal revenue equals marginal cost, a monopolistically competitive firm maximizes profits or minimizes losses in the short run. The business will turn a profit if the average total cost is less than the market price.
In the short run some factors of production are fixed and some factors are variable .The producers makes sure that their average total price is less than the market price so that they don't incur any losses in the near future.
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