Figure: Monopolistic Competition Reference: Ref 15-9 (Figure: Monopolistic Competition)

Multiple Choice

Figure: Monopolistic Competition Reference: Ref 15-9 (Figure: Monopolistic Competition) Refer to the figure. Suppose the figure represents a firm that operates in a monopolistically competitive market. In the long run you would expect:

A) prices to increase.
B) demand to become more inelastic.
C) less quality and innovation.
D) more firms to enter the market.