Question: Why might product development be efficient and why might it be inefficient? Product development is efficient if the marginal social benefit from an improved product

Why might product development be efficient and why might it be inefficient? Product development is efficient if the marginal social benefit from an improved product _______. Product development is inefficient because in monopolistic competition, _______. A. is greater than or equal to its marginal social cost; firms receive a greater return from advertising than from product development B. equals its marginal social cost; product development raises the price the firm can charge, which decreases the quantity sold C. equals its marginal social cost; profit is maximized when marginal revenue equals marginal cost, and marginal revenue is less than price D. increases the price that a firm can charge; profit is maximized when marginal revenue equals marginal cost, and marginal revenue is less than price

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