Interactive figure: long-run zero-profit equilibrium for a price searcher Imitative entry Before Zero profit Output (Q) Price / cost ($) AC MC D (before) D MR profit/unit = $0.00 Q* = 5 $6.45 $4.50 MR = MC Entry has pushed demand in until it just touches average cost. Price = average cost, profit = 0 — the long-run resting point, though MR = MC.