Suppose There Are Many Independent Dry Cleaners in Your City,each

Multiple Choice

Suppose there are many independent dry cleaners in your city,each of which is earning economic profits.According to the theory of monopolistic competition,

A) existing dry cleaners will cooperate and maximize their joint profits.
B) existing dry cleaners will engage in non-price competition and maintain their profits in the long run.
C) existing dry cleaners will expand until they reach the quantity associated with minimum long-run average cost.
D) existing dry cleaners will cooperate and restrict entry of new firms.
E) new dry cleaners will enter this market until each firm is earning zero profits.