Which of the Following Statements Is Correct Concerning a Typical

Which of the following statements is correct concerning a typical firm operating under conditions of monopolistic competition in the long run?

A) Excess capacity is lowered as demand becomes less elastic.
B) It operates on the rising portion of its average cost curve because of excess capacity.
C) The greater the product differentiation the lower will be the amount of excess capacity.
D) None of the choices are correct.