Monopolistic Competition Might Be Efficient If

Monopolistic competition might be efficient if

A) firms invested in technology that decreased the marginal cost of production.
B) more firms entered the industry.
C) firms left the industry.
D) the loss that arises because the quantity produced is less than the efficient quantity is offset by the gain that arises from having a greater degree of product variety.
E) firms made more use of brand names.

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