If monopolistically competitive firms have some control over their price, why don’t they set price above ATC so they will realize an economic profit in the long run?

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter26: Monopolistic Competition And Oligopoly
Section: Chapter Questions
Problem 2E
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  1. If monopolistically competitive firms have some control over their price, why don’t they set price above ATC so they will realize an economic profit in the long run?
  2. Why do monopolistically competitive firms spend funds for the product development and advertising when this practice only adds to the firm’s costs?
  3. Explain how concentration ratios and barriers to entry into the market relate to Monopolistic Competition and Oligopoly
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