According to Bustle.com, San Francisco has the most coffee shops of any American city (as of April 2016) with 2,613, with new shops opening regularly as the population grows. Suppose the city decides to stop issuing new business licenses for coffee shops so that the industry is capped at its current number of establishments.

This market is

A. Likely to be nearly competitive with many consumers.

B. Likely to be nearly competitive with differentiated coffee.

C. Unlikely to be nearly competitive with the licensing barrier to entry.

D. Likely to be nearly competitive with a downward-sloping demand curve.

E. Unlikely to be competitive with no known transaction costs.