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

question 82

Multiple Choice

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

• 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.

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Definitions:

Invoice

A document issued by a seller to a buyer that lists goods or services provided and demands payment.

Impostor Rule

A legal principle that holds an endorser liable when they endorse a negotiable instrument under an assumed name understood by the payee.

Negotiable Instrument

A textual commitment that secures the payment of an exact sum of money, whether immediately upon demand or at a future specified date, with the payer's identity indicated.

True Identity

Refers to the authentic, genuine identity of an individual, including their official names, personal characteristics, and any associated legal recognitions.