The Presence of Competition in Free Markets

question 144

Multiple Choice

The presence of competition in free markets:

• A)Is undesirable because it results in unnecessary duplication of efforts.
• B)Usually results in better quality and lower prices.
• C)Is rare,since most markets eventually evolve into monopolies.
• D)Is undesirable,because one big firm can usually produce goods more efficiently than a large number of small firms.

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Definitions:

Economic Downturn

A period of declining economic performance across a broad area, such as a country or multiple countries, characterized by reduced spending and increased unemployment.

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Contingency Planning

The process of preparing for unexpected events by developing strategies to address and mitigate risks.

Alternative Courses

Different paths or strategies that can be chosen in decision-making processes to achieve a specific goal.