Which of the Following Describes the Long-Run Situation for a Firm

Multiple Choice

Which of the following describes the long-run situation for a firm in a monopolistically competitive market?

A) Competition drives out firms until there is only one left.
B) New firms enter the market because of monopoly profits, the firm's demand curve shifts to the left and becomes flatter, and monopoly profits disappear.
C) New firms enter the market and eventually there is only one kind of product, and each firm agrees to share the profits.
D) Consumers are left with no choices and no close substitutes, and firms make higher profits.