In a market system, which of the following will eliminate high-cost producers and allow only the low-cost producers to survive?
A) competition
B) money
C) a sovereign government
D) specialization

Question

Quizplus · Accepted Answer

Competition drives producers to lower their costs and increase efficiency in order to offer their goods or services at a lower price than their competitors. This leads to high-cost producers being eliminated from the market, as consumers will choose to buy from the low-cost producers. Money, a sovereign government, and specialization do not necessarily lead to the elimination of high-cost producers.

In a Market System, Which of the Following Will Eliminate