Which of the Following Statements Is True About Competition in a Market

question 142

Multiple Choice

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

• A)Competition forces firms to outsource the production of their labour-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.

---

Definitions:

Acceptance

In contract law, the unqualified consent to the terms of an offer, thereby creating a binding contract.

Rejection

Termination of a contract that occurs when an offeree does not accept the offer or terms of the contract.

Incapacitated

In a state where an individual is unable to take legal actions or make their own decisions due to physical or mental limitations.

Offeror

An offeror is the party in a contract who makes an offer to enter into an agreement with another party, known as the offeree.