The Figure Below Shows the Revenue and Cost Curves of a Monopolistically

Multiple Choice

The figure below shows the revenue and cost curves of a monopolistically competitive firm. Figure: 11.2 In the figure,
D: Demand curve
MR: Marginal revenue curve
ATC₁ and ATC₂: Average total cost curves
MC: Marginal cost curve
-In Figure 11.2,assume that the average total cost of the firm is represented by the curve ATC₂.In the long run,we would expect:

A) entry of firms into the market because economic profits exist.
B) exit of firms from the market because the existing firms suffer economic losses.
C) that demand for each firm will increase.
D) the market to become perfectly competitive.
E) the market to become a monopoly.