Consider the following statements: Statement 1: "When oligopoly firms cheat on price fixing agreements, the resulting price and output quantity approaches that of perfect competition. " Statement 2: "Monopolistic competition is inefficient because a large deadweight loss from advertising and marketing costs is a characteristic of this form of competition. " Which of the following best describes the accuracy of these statementsStatement 1Statement 2()①A. IncorrectCorrect ②B. Correct Incorrect ③C. Correct Correct
A. ①
B. ②
C. ③