Which of the Following Is an Advantage of the Competitive

question 38

Multiple Choice

Which of the following is an advantage of the competitive market structure?

• A) Competitive firms have greater ability to pursue research and development.
• B) Larger companies can produce goods more efficiently than smaller firms.
• C) Competitive firms practice marginal cost pricing.
• D) Competitive firms make better use of economies of scale.

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Definitions:

Slope Formula

The slope formula, \(m = (y_2 - y_1) / (x_2 - x_1)\), calculates the steepness, incline, or grade of a linear equation's graph.

Slope

A measure of the steepness or incline of a line, calculated as the ratio of the vertical change to the horizontal change between two points on the line.

Indicated Pairs

Pairs of elements or items that are specified or identified in a particular context or problem.

Parallel

Lines or planes that are the same distance apart over their entire length, never meeting.