Suppose Two Firms,Allstom from France,and Bombardier from Canada,are Bidding on a Contract

Suppose two firms,Allstom from France,and Bombardier from Canada,are bidding on a contract to replace train cars for the subway system in Mexico City.If they bid the same amount,they share the contract-otherwise,the low bid wins.The figure below shows the payoff matrix for this contest.
$\begin{array}{c}&\text { Allstom (A) }\\\text { bombardier (B) }&\begin{array}{|l|l|l|}\hline & \begin{array}{l}\text { A bids } \\\$ 50 \text { million }\end{array} & \begin{array}{l}\text { A bids } \\\$ 35 \text { million }\end{array} \\\hline \begin{array}{l}\text { B bids } \\\$ 50 \mathrm{million}\end{array} & \begin{array}{l}\text { Profit to } A: \$ 10 \mathrm{~m} \\\text { Profit to } \mathrm{B}: \$ 10 \mathrm{~m}\end{array} & \begin{array}{l}\text { Profit to } A: \$ 5 \mathrm{~m} \\\text { Profit to } \mathrm{B}: \$ 0 \mathrm{~m}\end{array} \\\hline \begin{array}{l}\text { B bids } \\\$ 35 \mathrm{million}\end{array} & \begin{array}{l}\text { Profit to } \mathrm{A}: \$ 0 \\\text { Profit to } \mathrm{B}: \$ 5 \mathrm{~m}\end{array} & \begin{array}{l}\text { Profit to } A: \$ 2.5 \mathrm{~m} \\\text { Profit to } \mathrm{B}: \$ 2.5 \mathrm{~m}\end{array} \\\hline\end{array}\end{array}$ FIGURE 11- 4
-If there are economic profits in a monopolistically competitive industry,they will generally be competed away through the

A) entry of new firms.
B) introduction of brand name products by existing firms.
C) increasing advertising budgets of existing firms.
D) manipulation of the demand curve.
E) exit of existing firms.