Q5. Competition has been identied as a key factor in making a market-based system more efficient. Which of the following statements is inconsistent with this role of competition? A. The freedom to enter or exit from the market increases market efficiency. B. Government encourages business investment by providing limited disincentives through taxation that is as low as possible. C. The price-based mechanism that signals appropriate resource allocation works more effectively when transaction costs among traders are lower. D. The fact that many firms are able to compete in a marketplace is more likely to lead to the best product at the lowest price. E. Government regulation that limits the ability of starting a specific type of business is likely to encourage efficient resource allocation