Lanny’s Gifts is a small business in a new industry. Which of the following scenarios demonstrates this industry is monopolistically competitive?

A. Lanny’s Gifts is in an industry with easy entry and low markup.

B. Lanny’s Gifts is in an industry with high barriers to entry and high markup.

C. Lanny’s Gifts is in an industry with high barriers to entry and low markup.

D. Lanny’s Gifts has no control over price.

E. Lanny’s Gifts exhibits a horizontal demand curve.