Competition means:
A) that a society's wealth is maximised.
B) that a society experiences a deadweight loss.
C) high prices and less goods.
D) that a society misallocates its resources.

Question

Quizplus · Accepted Answer

Competition leads to innovation and efficiency, which maximizes a society's wealth. In a competitive market, firms must constantly improve their products or services to remain competitive and attract customers. This leads to better-quality products, lower prices, and increased consumer surplus. Also, competition encourages firms to operate efficiently by minimizing costs, which results in a higher supply of goods and services at a lower cost to consumers. Therefore, competition is beneficial for society as a whole.

Competition Means