Long-term economic profits for all businesses are zero. Its quantity demanded will be tangent towards its average-total-cost curve whenever a profit-maximizing firm inside a monopolistic competitive market is generating its long-run Equilibrium quantity. The business makes no economic profit.
<h3>What is the Equilibrium Quantity?</h3>
An Equilibrium Quantity is neither in short supply nor when supply and demand cross, the amount of a good that consumers desire to buy is equivalent to the amount that its manufacturers are supplying.
The price and quantity function can be solved to determine the equilibrium quantity (Qa - bP = x + YP). An equilibrium price can be determined by solving the equation whenever the supply and demand are equal. To determine the quantity, enter the equilibrium price into the supply or demand function.
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