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

question 39

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 benefitting 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:

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The process by which individuals make decisions about what is right and wrong, based on ethical principles.

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