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$14\mathrm{.}3.$ PS $\backslash$#$7-$ Part II$-$A $-14\mathrm{.}3$

$($b$)$ How does N$,$ the number of firms, affect each firm's demand curve? Explain the economics here by describing how this effect of N on a firm's demand curve is unique to the industry structure of monopolistic competition.

This firm's demand depends demand

on N $,$ implying that if N gets this firm's residual

A$.$ Positively; smaller; decreases

B$.$ Negatively; larger ; increases

C$.$ Negatively; smaller; increases

D$.$ Positively ; larger; decreases