What does the term "forces of uncompetition" refer to?
A)The tendency in the market for some firms to grow larger and drive other firms out of business,thereby eroding perfect competition.
B)The inability of firms to provide all the products that people want.
C)The inevitable wealth and income inequalities resulting from the market.
D)The tendency of governments to take over certain firms.

Question

Quizplus · Accepted Answer

The term "forces of uncompetition" refers to the factors that make perfect competition in the market unrealistic, and one of these factors is the tendency for some firms to grow larger and drive other firms out of business. This is often caused by economies of scale, where larger firms can produce goods at a lower cost than smaller ones, giving them a competitive advantage. As a result, the market becomes less competitive, leading to higher prices and reduced consumer choice.

What Does the Term "Forces of Uncompetition" Refer To