Monopolistic Competition Occurs in a Market with Free Entry

Monopolistic competition occurs in a market with free entry:

A) when there are only a few firms, each producing a unique product, prices above marginal cost and earns zero profit net of fixed costs.
B) when there is a large number of firms, each producing an identical product, prices above marginal cost and earns zero profit net of its fixed costs.
C) when there is a large number of firms, each of which produces a unique product, prices above marginal cost and earns zero profit net of its fixed costs.
D) when there is a large number of firms, each of which produces a unique product, prices above marginal cost and earns a positive profit net of its fixed costs.