Which of the following is an advantage of the competitive market structure?
A) Competitive firms have greater ability to pursue research and development.
B) Larger companies can produce goods more efficiently than smaller firms.
C) Competitive firms practice marginal cost pricing.
D) Competitive firms make better use of economies of scale.

Question

Quizplus · Accepted Answer

Competitive firms practice marginal cost pricing, which leads to lower prices and greater efficiency in resource allocation. This benefits consumers by providing them with affordable goods and services.

Which of the Following Is an Advantage of the Competitive