In the short run of monopolistic competition, the firm has the equilibrium point where MC=MR and the rate of return for the firm is greater than the rate required to reimburse liability and equity holders. While in the long run, the firm will make zero economic profits and rate of return of the firm is equal to the rate required to reimburse liability and equity holders. The firm produce the quantity where MR=LRMC.
http://www.investopedia.com/articles/03/012703.asp - 38k -
http://www.investopedia.com/articles/03/012703.asp - 38k -
