If Economic Losses Exist in a Monopolistically Competitive Market

Multiple Choice

If economic losses exist in a monopolistically competitive market,

A) new products will be introduced.
B) new firms will enter the market because they see potential for profit in the future.
C) firms will exit the market and the existing firms' demand curves will shift inward.
D) the average total cost curve must lie below the demand curve.
E) firms will exit the market and existing firms' demand curves will shift outward.