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Use the Information Below to Answer the Following Questions

Question 39

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Use the information below to answer the following questions.
Fact 14.2.1 Groceries for the Gourmet Palate
No food, it seems, is safe from being repackaged to look like an upscale product. Samuel Adams' $120 Utopias, in a ridiculous copper-covered 24-oz. bottle meant to resemble an old-fashioned brew kettle, is barely beer. It's not carbonated like a Bud, but aged in oak barrels like scotch. It has a vintage year, like a Bordeaux, is light, complex, and free of any alcohol sting, despite having six times as much alcohol content as a regular can of brew.
Source: Time, April 14, 2008
-Refer to Fact 14.2.1. Samuel Adams makes the market for beer inefficient if


A) the loss that arises from having greater product variety offsets the gain that arises because the quantity produced is less than the efficient quantity.
B) more firms enter the market.
C) the loss that arises because the quantity produced is less than the efficient quantity is not offset by the gain that arises from having greater product variety.
D) firms exit the market.
E) the marginal social cost of production equals the marginal social benefit received by consumers.

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