Which of the Following Statements Regarding Monopolistic Competition Is FALSE

Multiple Choice

Which of the following statements regarding monopolistic competition is FALSE?

A) Resources are used efficiently when marginal social benefit equals marginal social cost.
B) A greater degree of product variety creates a loss because the quantity produced is less than the efficient quantity.
C) Monopolistic competition is definitely inefficient because price exceeds marginal cost.
D) Compared to a situation with total product uniformity,monopolist competition might be efficient.
E) A firm in monopolistic competition produces a quantity that is less than the efficient scale.