As New Firms Enter a Monopolistically Competitive Market,what Happens to Profits

As new firms enter a monopolistically competitive market,what happens to profits of existing firms and product diversity in the market

A) Profits of existing firms rise and product diversity in the market increases.
B) Profits of existing firms rise and product diversity in the market decreases.
C) Profits of existing firms decline and product diversity in the market increases.
D) Profits of existing firms decline and product diversity in the market decreases.