Which Statement Best Explains the Welfare Loss Associated with a Monopolistically

Multiple Choice

Which statement best explains the welfare loss associated with a monopolistically competitive market

A) The entry of new firms creates externalities.
B) The absence of restrictions on entry by new firms ensures that there will be no deadweight loss.
C) There are generally too many firms in the market relative to the socially optimal number of firms.
D) There are generally too few firms in the market relative to the socially optimal number of firms.