Firms That Fail to Compete with Lower Prices And/or Better

question 241

Multiple Choice

Firms that fail to compete with lower prices and/or better products will:

• A) go bankrupt and increase economic efficiency.
• B) go bankrupt and decrease economic efficiency.
• C) have to merge with other companies to stay in business.
• D) often increase economic efficiency if they stay in business even though they are making losses since this will increase competition in the market.

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Definitions:

Frequency Polygon

A graphical representation of the distribution of a dataset that uses lines connecting points representing the frequencies of respective values.

Initial Understanding

The foundational or basic comprehension of a concept, phenomenon, or situation before further, deeper learning takes place.

Dependent Variables

Variables in an experiment that are expected to change as a result of changes made to the independent variables.

Frequency Polygon

A graphical representation of the distribution of numerical data. It is a line graph of class frequencies plotted against mid-point values.