The Figure Given Below Shows the Cost and Revenue Curves

Multiple Choice

The figure given below shows the cost and revenue curves of a monopolist.Figure 11.9
D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
-As new firms enter a monopolistically competitive industry, the demand for a typical firm's product will most likely:

A) increase and become less elastic.
B) decrease and become more elastic.
C) increase and become more elastic.
D) decrease and become less elastic.
E) remain unaffected.