Amonopolistlcally competitive industry is illustrated by the gure with the demand (D1 ). marginal revenue (MR1). marginal cost (M61), and long-run average cost (AC1) curves for a representative rm. Suppose rms in this industry are initially producing such that they maximize prots. How will this industry adjust to a long-run equilibrium? ' The demand curve E and the marginal revenue curve l:l. The marginal cost curve '1 and the average cost curve E. MC1 Ac1 Q Q Price (dollars per unit) 8 O 2 3 4 5 6 Quantity