If There Are Large Fixed Costs,due to Research and Development,perfect

Multiple Choice

If there are large fixed costs,due to research and development,perfect competition does not generate new ideas,because:

A) firms need to recoup these costs through higher profits.
B) with monopolistic competition,prices are equal to the marginal cost plus a markup.
C) with monopolistic competition,prices are equal to the marginal cost minus a markup.
D) perfectly competitive firms always set prices lower than the marginal cost.
E) Both a and b are correct.