Which Statement Is True

Which statement is true?

A) The product variety effect suggests that there will be too much entry in a monopolistically competitive industry.
B) The product variety effect suggests that a firm in a monopolistically competitive industry is more likely to shut down.
C) The business stealing effect suggests that there is too little entry in a monopolistically competitive industry.
D) Depending on the relative importance of the business stealing and the product variety effects, there can be too much or too little entry in a monopolistically competitive industry.
E) None of the above.