Monopolistic competition may lead to each of the following except

A) inefficiency.
B) over-differentiation.
C) long-run break-even.
D) monopoly profits.

Monopolistic Competition

An industry that has many firms producing a differentiated product.

Over-Differentiation

Over-differentiation occurs when a company creates too many variations of a product, causing confusion among consumers and potentially harming sales.

Monopoly Profits

Excess profits earned by a monopoly as a result of having sole control over a market, enabling it to charge higher prices by restricting supply.