Which of the Following Statements Concerning a Monopolistically Competitive Industry

Which of the following statements concerning a monopolistically competitive industry is correct?

A) If there are short-run losses,firms will exit from the industry and the demand of the remaining firms will decrease.
B) If there are short-run losses,firms will exit from the industry and the demand of the remaining firms will increase.
C) If there are short-run profits,firms will exit from the industry and the demand of the remaining firms will increase.
D) If there are short-run profits,firms will enter the industry and the demand of the remaining firms will increase.