Competition among sellers generates
A)productive efficiency.
B)allocative efficiency.
C)equity.
D)scarcity.

Question

Quizplus · Accepted Answer

Competition among sellers incentivizes them to produce goods and services at the lowest possible cost, which leads to productive efficiency. This means that resources are being used in the most efficient way possible to produce goods and services. However, competition does not necessarily result in allocative efficiency, equity, or scarcity. Allocative efficiency occurs when resources are allocated in a way that maximizes social welfare, while equity refers to fairness in the distribution of resources. Scarcity refers to the fact that resources are limited, which is a fundamental concept in economics.

Competition Among Sellers Generates