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Firms in amonopolistically competitive market structure maximize their profit by producing an output where:

Firms in amonopolistically competitive market structure maximize their profit by producing an output where:
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Firms in amonopolistically competitive market structure maximize their profit by producing an output where marginal cost is equal to marginal revenue.  Because the individual firm’s demand curve is downward sloping, reflecting market power, the price these firms will charge will exceed their marginal costs. Due to how products are priced in this market, consumer surplus decreases below the pareto optimal levels you would find in a perfectly competitive market, at least in the short run. As a result, the market will suffer deadweight loss. The suppliers in this market will also have excess production capacity

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