Exhibit 10-18 Consider the Situation Depicted for the Monopolistically

Exhibit 10-18 Consider the situation depicted for the monopolistically competitive firm in Exhibit 10-18.What would you expect to happen in this market in the long-run?

A) exit of resources will occur and this firm's demand curve will shift out leading to a higher price
B) exit of resources will occur and this firm's demand curve will shift out leading to a lower price
C) nothing will happen the industry is in long-run equilibrium
D) entry of new resources will occur and this firm's demand curve will shift in leading to a lower price
E) entry of new resources will occur and this firm's demand curve will shift in leading to a higher price