The Competitive Market Model Is Important Because

question 103

Multiple Choice

The competitive market model is important because

• A)It characterizes all the markets in the U.S.economy.
• B)It shows how laissez faire can overcome market failures.
• C)Many industries function much like the competitive model.
• D)It shows that firms can earn economic profits in the long run.

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Definitions:

Increased Revenue

Refers to the growth in income generated from a business's products or services over a certain period.

Sustainability

The ability to maintain and support a process or practice over the long term without harming the environment or depleting resources.

Shared Benefits

Advantages or positive outcomes that are distributed among or accessible to multiple parties.

Local Costs

Expenses that are incurred within a specific geographic location, often referring to the cost of operations, labor, and materials.