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.

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Definitions:

Rejection Region

In hypothesis testing, the range of values for which the null hypothesis is rejected in favor of the alternative hypothesis.

Population Variances

A measure of the dispersion of all the data points in a population from the mean.

Confidence Interval

A span of numbers, extracted from statistics of a sample, which is probably going to include the value of an unseen population parameter, with a specified level of certainty.

Population Variances

Statistical measures that quantify the spread or dispersion within a set of population data values.