Suppose Two Firms,Allstom from France,and Bombardier from Canada,are Bidding on a Contract

Suppose two firms,Allstom from France,and Bombardier from Canada,are bidding on a contract to replace train cars for the subway system in Mexico City.If they bid the same amount,they share the contract-otherwise,the low bid wins.The figure below shows the payoff matrix for this contest.
$\begin{array}{c}&\text { Allstom (A) }\\\text { bombardier (B) }&\begin{array}{|l|l|l|}\hline & \begin{array}{l}\text { A bids } \\\$ 50 \text { million }\end{array} & \begin{array}{l}\text { A bids } \\\$ 35 \text { million }\end{array} \\\hline \begin{array}{l}\text { B bids } \\\$ 50 \mathrm{million}\end{array} & \begin{array}{l}\text { Profit to } A: \$ 10 \mathrm{~m} \\\text { Profit to } \mathrm{B}: \$ 10 \mathrm{~m}\end{array} & \begin{array}{l}\text { Profit to } A: \$ 5 \mathrm{~m} \\\text { Profit to } \mathrm{B}: \$ 0 \mathrm{~m}\end{array} \\\hline \begin{array}{l}\text { B bids } \\\$ 35 \mathrm{million}\end{array} & \begin{array}{l}\text { Profit to } \mathrm{A}: \$ 0 \\\text { Profit to } \mathrm{B}: \$ 5 \mathrm{~m}\end{array} & \begin{array}{l}\text { Profit to } A: \$ 2.5 \mathrm{~m} \\\text { Profit to } \mathrm{B}: \$ 2.5 \mathrm{~m}\end{array} \\\hline\end{array}\end{array}$ FIGURE 11- 4
-If a monopolistically competitive industry is in long- run equilibrium,then for each firm

A) price equals MC at the minimum level of the firm's LRAC curve.
B) the demand curve cuts the MC curve at the minimum level of the LRAC curve.
C) the MC curve intersects MR at the minimum level of its LRAC curve.
D) positive profits are being earned.
E) the demand curve is tangent to its LRAC curve.