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Figure: Profit Maximization in Monopolistic Competition
-(Figure: Profit Maximization in Monopolistic Competition)Use Figure: Profit Maximization in Monopolistic Competition.In panel (b)of the figure,the long-run equilibrium will result in:

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Use the following to answer questions :
Figure: Profit Maximization in Monopolistic Competition 
-(Figure: Profit Maximization in Monopolistic Competition)Use Figure: Profit Maximization in Monopolistic Competition.In panel (b)of the figure,the long-run equilibrium will result in:

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In the long-run equilibrium of monopolistic competition, firms earn zero economic profits due to the entry of new firms, which drives down prices and profits. The ATC curve is tangent to the demand curve, not the MR curve.

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