Long Run Equilibrium of Monopolistic Competition
In the long run, a firm in a monopolistic competitive market will product the amount of goods where the long run marginal cost (LRMC) curve intersects marginal revenue (MR). The price will be set where the quantity produced falls on the average revenue (AR) curve. The result is that in the long-term the firm will break even.
Source
Boundless vets and curates high-quality, openly licensed content from around the Internet. This particular resource used the following sources:
"Long-run equilibrium of the firm under monopolistic competition."
http://commons.wikimedia.org/wiki/File:Long-run_equilibrium_of_the_firm_under_monopolistic_competition.JPG
Wikimedia
GNU FDL.
