Advocates of an Unregulated Market System Argue That

question 167

Multiple Choice

Advocates of an unregulated market system argue that

• A) competition promotes efficiency.
• B) competition leads to innovation.
• C) competition leads to product variety and quality.
• D) all of the above.

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Definitions:

General Rule

A principle or guideline that applies broadly and is considered to be of general use or value.

External Sales

Sales made to parties outside of the company, as opposed to internal transactions.

Variable Cost

Costs that vary directly with the level of production or volume of output.

Excess Capacity

The situation where a company's production facilities can produce more goods than currently demanded by its market.