Which of the Following Represents the Best Government Policy to Reduce

Which of the following represents the best government policy to reduce the deadweight loss associated with a monopolistically competitive market?

A) The government should regulate firms in a manner similar to natural monopolies.
B) The government should encourage more firms to enter the industry because without government intervention, there are likely to be "too few" firms.
C) The government should encourage some firms to exit the industry because without government intervention, there are likely to be "too many" firms.
D) There is no government policy that can reduce deadweight loss without creating other problems.