Figure 12.1.2 -Refer to Figure 12.1.2 Above. Which of the Following Best

Multiple Choice

Figure 12.1.2
-Refer to Figure 12.1.2 above. Which of the following best describes the reason for the shaded triangle in panel (b) ?

A) The triangle shows the benefits of advertising and product differentiation, which do not exist in perfect competition.
B) The triangle describes the improvement in efficiency in monopolistic competition.
C) The triangle describes the deadweight loss associated with market power in monopolistic competition.
D) The gains in allocative efficiency under monopolistic competition, compared to a perfectly competitive market.