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:

Socially Responsible

Acting with consideration for the impact on society and the environment, often associated with ethical business practices.

Independent Directors

Board members who do not have a material or pecuniary relationship with the company, providing unbiased oversight.

NYSE

Stands for New York Stock Exchange, one of the largest stock exchanges in the world, located in New York City.

NASDAQ

The NASDAQ is a global electronic marketplace for buying and selling securities, as well as the benchmark index for U.S. technology stocks.