1) The figure on the left shows economic profit.
2) The quantity supplied is determined by the point where MC and MR intersects, and extends the vertical line upward to find the price that the firm would charge.
3) Because price is above ATC, this firm is earning economic profit

HOWEVER! Entry eliminates profit
4) Economic profit attracts new firms to enter. Because a monopolistic competitive industry has low barrier of entry, eventually, the firm will only earn a normal profit in the future
5) Demand of the firm will shift to the left and become more elastic because there are more substitutes
6) After adjussting price and demand, you should know that the firm loses its economic profit.