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

Question

Quizplus · Accepted Answer

In competitive markets, consumers have a choice of many firms. Competition puts pressure on each firm to provide a good quality product and to charge a fair price. Firms that fail to do so will lose their customers.

The Presence of Competition in Free Markets