Consider an industry with significant barriers to entry and consisting of two firms producing a homogenous product. Under which situation are these firms more likely to compete in quantity rather than price?
A) when there are capacity constrains so that quantity is difficult to adjust in the short run
B) when there are no capacity constraints so that quantity can easily be adjusted in the short run
C) when the firms are producing differentiated products
D) when the firms have different marginal costs of production
E) none of the above