In the long-run equilibrium in a monopolistic market, a profit-maximising firm's output is where marginal cost is less than marginal revenue.

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In the long-run equilibrium in a monopolistic market, a profit-maximising firm's output is where marginal cost equals marginal revenue. This is because monopolistic firms can set their own prices and will continue to produce and sell as long as the marginal revenue generated from each unit sold is greater than or equal to the marginal cost of producing that unit. If marginal cost is less than marginal revenue, the firm could increase its profits by producing more units. Thus, the output where marginal cost equals marginal revenue maximises the firm's profits in the long run.

In the Long-Run Equilibrium in a Monopolistic Market, a Profit-Maximising