Refer to the information provided in Figure 13.9 below to answer the question(s) that follow. Figure 13.9
-Refer to Figure 13.9. If competition is introduced into the market, the net social gain ________ the area BEC to the extent that firms facing competition may have a greater incentive to cut costs and innovate which result in gains to society.
A) will be equal to
B) may be greater than
C) will be less than
D) will be everything beneath

Question

Refer to the information provided in Figure 13.9 below to answer the question(s) that follow.  Figure 13.9
-Refer to Figure 13.9. If competition is introduced into the market, the net social gain ________ the area BEC to the extent that firms facing competition may have a greater incentive to cut costs and innovate which result in gains to society.
A) will be equal to 
B) may be greater than 
C) will be less than 
D) will be everything beneath

Quizplus · Accepted Answer

Competition often drives firms to innovate and cut costs to stay competitive, which can lead to greater efficiency and benefits to society beyond the initial net social gain represented by the area BEC. This is because competition can lead to lower prices, better quality products, and more choices for consumers, all of which contribute to an increase in consumer surplus and overall social welfare.

Refer to the Information Provided in Figure 13