In the Model of Monopolistic Competition, Trade Costs Between Countries

In the model of monopolistic competition, trade costs between countries cause

A) marginal costs of goods sold domestically to exceed the marginal costs of exported goods.
B) countries to negotiate the elimination of trade costs by mutual subsidization of trade.
C) prices of goods sold domestically to exceed the prices of exported goods.
D) some firms that can earn a profit on domestic sales to refrain from exporting their goods.
E) all firms that can earn a profit on domestic sales to export their goods at higher prices.