Which of the following statements about competition in a market is true?

A) Competition forces firms to produce and sell products as long as the marginal benefit to consumers exceeds the marginal cost of production.
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 add only low profit margins to their costs of production.
D) Competition forces firms to outsource the production of their labor-intensive products.

A

Economics

You might also like to view...

Refer to Scenario 1 . The student has already taken 9 exams. His 9th exam was a 65 and his 10th exam was higher than the 9th exam. What can we conclude has happened to his average?

What will be an ideal response?

Economics

Why do banks create money? Do they create money to help the Federal Reserve control the money supply or is there a more basic reason?

What will be an ideal response?

Economics