Which of the Following Is True of Monopolistically Competitive Markets

Multiple Choice

Which of the following is true of monopolistically competitive markets?

A) The economic profits of firms in a monopolistically competitive market are positive in the long run.
B) The cost of government regulation is small relative to the social losses from monopolistic competition.
C) Since the price and output combination in a monopolistically competitive market is efficient,there is no need for government regulation.
D) It is possible that the value created through product differentiation outweighs the efficiency loss from monopolistic competition.