Refer to the information provided in Figure 13.9 below to answer the question(s) that follow. 
Figure 13.9 Refer to Figure 13.9. If competition is introduced into the market, the net social gain may be greater than the area BEC to the extent that
A. society may value the increase in consumer welfare on equity as well as efficiency grounds.
B. the firm may have engaged in rent-seeking behavior, the cost of which would also be avoided.
C. firms facing competition may have a greater incentive to cut costs and innovate, which results in gains to society.
D. All of the above are correct.
Answer: D
Economics
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Indicate whether the statement is true or false
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Limited liability is a characteristic of
A) partnerships only. B) corporations only. C) partnerships and proprietorships only. D) proprietorships only.
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