If There Are Large Fixed Costs Due to Research and Development

If there are large fixed costs due to research and development, perfect competition does not generate new ideas because:

A) firms need to recoup these costs through higher profits.
B) with monopolistic competition, prices are equal to the marginal cost.
C) with monopolistic competition, prices are equal to the marginal cost minus a markup.
D) perfectly competitive firms always set prices lower than the marginal cost.
E) the government does not adequately fund innovation.