Competition forces firms to produce and sell products as long as the ________ to consumers exceeds the ________ of production.

Question

Quizplus · Accepted Answer

Competition incentivizes firms to only produce and sell products if the additional benefit to consumers (marginal benefit) exceeds the additional cost of producing it (marginal cost). Therefore, choice A correctly identifies the relationship between marginal benefit and marginal cost in the context of competition.

Competition Forces Firms to Produce and Sell Products as Long