Nick, a young economist, says that monopolistically competitive industries are known to be inefficient from an economic standpoint. Hunter argues that while this is true, there is a trade-off that "compensates" a sotetety to the economic inefficiency. The trade-off is that:
A. Consumers have increased product variety.
B. Resources are optimally allocated to the production of the product.
C. Available capacity is fully utilized.
D. Advertising expenditures shift the average cost curve upward.
