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:

Northwestern Coast

A geographical term referring to the coastal areas located in the northwestern part of a continent or country, often characterized by specific climatic and ecological features.

North America

A continent entirely within the Northern Hemisphere and almost all within the Western Hemisphere.

Aquatic Ecosystems

Water-based environments—including oceans, lakes, rivers, and wetlands—that support a diverse range of life through complex interrelationships.

Mosses

Small, non-vascular plants that typically form dense green clumps or mats, often in damp or shady locations.