Which of the following statements is true?

Question

Quizplus · Accepted Answer

A large number of small banks encourages competition and efficiency because they have to compete with each other for customers, which leads to lower prices and better services. On the other hand, a few large firms would result in limited competition and inefficiency because they would have a significant market power and could potentially abuse it. Higher profits do not necessarily result when more firms are in the local market, as it depends on the level of competitiveness and market conditions.

Which of the Following Statements Is True