Which of the Following Statements About Competition in a Market

question 154

Multiple Choice

Which of the following statements about competition in a market is true?

• A)Competition forces firms to outsource the production of their labor-intensive products.
• B)Competition forces firms to undercut their selling price, thus benefiting consumers who will be able to purchase products at the lowest price possible.
• C)Competition forces firms to produce and sell products as long as the marginal benefit to consumers exceeds the marginal cost of production.
• D)Competition forces firms to add only low profit margins to their costs of production.