Monopolistic competition long-run equilibrium graph with excess capacity

An example figure from the Cost and Revenue Curves generator.

Graph of Price and costs against Quantity with no numbers on the axes: a downward-sloping demand curve D = AR just touching a U-shaped ATC curve at a dot, a dashed MR curve, and MC crossing MR directly below the dot. Dashed lines run from the dot to Pₑ on the price axis and qₑ on the quantity axis, and from a dot at the lowest point of ATC, where MC crosses it, down to q with the subscript min ATC. A brace under the quantity axis from qₑ to q min ATC is labeled Excess capacity. — A monopolistically competitive firm in long-run equilibrium. It produces qₑ, where MR meets MC, and its demand curve just touches ATC there, so the price Pₑ equals ATC and the firm makes zero economic profit. qₑ is less than the quantity at ATC’s lowest point, and the gap between them is bracketed as excess capacity.

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