Theoretically, competition and efficiency determine a firm's performance as measured by which of the following?

Question

Quizplus · Accepted Answer

Competition and efficiency will affect all three factors listed, as follows:
A) Quantity of goods and services produced - If a firm is efficient and able to produce goods and services at a lower cost, it may be able to produce more output than its competitors. Additionally, in a competitive market, firms may need to produce more to meet demand and stay competitive. 
B) Profitability of the firm - Efficiency and competition can both affect a firm's profitability, as firms that are efficient may be able to produce goods and services at a lower cost, leading to higher profits. Additionally, in a competitive market, firms may need to keep prices low and profit margins slim in order to compete with other firms.
C) Prices they are able to charge - In a competitive market, firms may need to keep prices low in order to stay competitive. However, firms that are efficient may be able to charge lower prices while still making a profit due to their lower production costs.

Theoretically, Competition and Efficiency Determine a Firm's Performance as Measured