Use the Figure Below to Answer the Following Questions

Use the figure below to answer the following questions.

Figure 14.2.3
-Refer to Figure 14.2.3. Assume this firm faces demand curve D₂. If this firm in monopolistic competition is maximizing economic profit,

A) there will be entry of rival firms into the industry.
B) rival firms will exit the industry.
C) it is producing the efficient quantity.
D) the number of firms in the industry will remain constant.
E) economic profit will fall over time.