Exhibit 11-1 -When Firms Leave a Monopolistically Competitive Industry, Remaining Firms' Demands

Exhibit 11-1
-When firms leave a monopolistically competitive industry, remaining firms' demands increase because

A) consumers who were buying from the exiting firms add to the demand of those remaining.
B) those firms that are left become monopolies, and consumers have no choice but to buy from them.
C) the remaining firms improve their product in order to avoid the same fate as those that failed.
D) costs of production fall as there is not as much demand for inputs.
E) remaining firms increase production capacity and can serve wider markets.