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Figure: Profit Maximization in Monopolistic Competition
-(Figure: Profit Maximization in Monopolistic Competition) Use Figure: Profit Maximization in Monopolistic Competition.In monopolistic competition,long-run equilibrium is characterized by:

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Figure: Profit Maximization in Monopolistic Competition 
-(Figure: Profit Maximization in Monopolistic Competition)Use Figure: Profit Maximization in Monopolistic Competition.In monopolistic competition,long-run equilibrium is characterized by:
A)P > MR. 
B)P < MR. 
C)P = MR. 
D)profit maximization,which occurs where P = MR = MC.

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In monopolistic competition, the demand curve faced by a firm is downward sloping, meaning that to sell more, the firm must lower its price. This results in a situation where the price (P) a firm charges for its product is greater than the marginal revenue (MR) it receives from selling one more unit, because lowering the price to sell one more unit reduces the revenue gained from units that could have been sold at a higher price. Therefore, P > MR characterizes monopolistic competition.

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