When Greenlawn Inc. finds itself losing contracts because Lo-Price Lawn Co. charges less money, Greenlawn responds by lowering its bids. This reaction demonstrates ______.
A) the right to private property
B) the "invisible hand" of competition
C) collusion
D) social responsibility

Question

Quizplus · Accepted Answer

The reaction of Greenlawn Inc. to lowering its bids in response to competition from Lo-Price Lawn Co. is an example of the "invisible hand" of competition. This term refers to the natural market forces that push companies to adjust their prices and offerings based on consumer demand and other market factors. By lowering its bids, Greenlawn is attempting to remain competitive and appeal to customers who are drawn to lower prices.