A monopolistically competitive firm: Question 14 options: tries to differentiate its product from the products of competitors. faces a perfectly elastic demand curve for its product. unlike a perfectly competitive firm, is able to earn positive economic profits in the long run. is always a retail establishment. tries to differentiate its product from the products of competitors. faces a perfectly elastic demand curve for its product. unlike a perfectly competitive firm, is able to earn positive economic profits in the long run. is always a retail establishment. Solution A monopolistically competive firm.