A monopolistically competitive firm is in long-run equilibrium. Which of the following combinations of conditions holds simultaneously?

Two simultaneous long-run conditions: • P = AC (Zero Profit): Free entry/exit eliminates supernormal profits. Revenue exactly covers total cost. • P > MC (Allocative Inefficiency): Downward-sloping demand means MR < P always. Profit max: MR = MC, so P > MC. The tangency of demand and LAC occurs on the downward-sloping segment of LAC — to the left of minimum LAC. This is Chamberlin’s excess capacity theorem. Option (A) describes perfect competition. Options (C) and (D) are short-run positions only.