Assume the Following for a Certain Industry: (L) There Is

Multiple Choice

Assume the following for a certain industry: (l) there is no incentive for firms to enter or exit the industry; (2) for some firms in the industry, short-run average total cost is greater than long-run average total cost at the level of output where marginal revenue equals marginal cost; (3) all firms in the industry are currently producing the quantity of output at which marginal revenue equals marginal cost. Is the industry in long-run competitive equilibrium?

A) Yes.
B) No, because of number 2.
C) No, because of numbers 2 and 3.
D) No, because of numbers 1 and 2.
E) No, because of numbers 1, 2, and 3.