In the figure to the right the curve labeled PP shows, for a "typical" monopolistically competitive market, the relationship between product price and the number of firms. This curve is negatively sloped because...

In the figure to the right the curve labeled PP shows, for a "typical" monopolistically competitive market, the relationship between product price and the number of firms. This curve is negatively sloped because A. more firms give rise to more intense competition, and hence a lower price. B. more firms can overpower and exploit workers, yielding low wages and consequently low prices. C. a lower price attracts consumers, enabling more firms to enter the market. D. product quality is "watered down" when there are many firms, thus necessitating a lower price