A monopolistically competitive firm in long-run equilibrium:

A) will make negative profit.
B) will make zero profit.
C) will make positive profit.
D) Any of the above are possible.

Long-run Equilibrium

A state in which all factors of production and costs are variable, and all economic actors have fully adjusted to any economic changes, leading to a no-profit, no-loss scenario.

Monopolistically Competitive

A market structure characterized by many firms selling products that are similar but not identical, allowing for some degree of market power and differentiated competition.

Zero Profit

A situation where a firm's total revenues exactly equal its total costs, resulting in no net gain or loss.