The dynamic process of competition
A) provides profit-seeking sellers with little incentive to heed consumer preferences.
B) was shown by Adam Smith to be a major source of economic inefficiency.
C) provides consumers with alternative suppliers and thus a mechanism with which they can discipline sellers.
D) will permit business decision makers to earn long-run economic profit unless they are regulated by government officials.

Question

Quizplus · Accepted Answer

Competition provides consumers with choices among suppliers, allowing them to influence and discipline sellers by choosing where to spend their money, thus aligning sellers' incentives with consumer preferences.

The Dynamic Process of Competition