The Diagram Below Shows Demand and Cost Curves for a Monopolistically

The diagram below shows demand and cost curves for a monopolistically competitive firm. FIGURE 11- 3
-Refer to Figure 11- 3. If an increase in industry demand led to an outward shift in each firm's demand curve, the typical firm would

A) be making losses and some firms would exit the industry in the long run.
B) increase costs in order to break even at PL and QL in the long run.
C) be making profits and new firms would enter the industry in the long run.
D) would expand its output in the long run.
E) decrease costs in order to break even at PL and QL in the long run.