The presence of competition in free markets:
A)typically results in better quality and lower prices.
B)is rare,since most markets eventually evolve into monopolies.
C)is undesirable because it results in unnecessary duplication of efforts.
D)is undesirable,because one big firm can usually produce goods more efficiently than a large number of small firms.

Question

Quizplus · Accepted Answer

Competition in free markets encourages firms to produce better quality goods at lower prices in order to attract customers and increase market share. This benefits consumers by giving them more options and better prices. It also benefits the economy as a whole by encouraging innovation and efficiency. The idea that most markets evolve into monopolies is a myth, and competition is generally considered desirable in free market economies.

The Presence of Competition in Free Markets