Which of the following statements is true about competition in a market?
A) Competition forces firms to outsource the production of their labour-intensive products.
B) Competition forces firms to undercut their selling price, thus benefitting consumers who will be able to purchase products at the lowest price possible.
C) Competition forces firms to produce and sell products as long as the marginal benefit to consumers exceeds the marginal cost of production.
D) Competition forces firms to add only low profit margins to their costs of production.

Question

Quizplus · Accepted Answer

Competition in a market encourages firms to produce and sell products as long as the marginal benefit to consumers exceeds the marginal cost of production, ensuring efficient allocation of resources.

Which of the Following Statements Is True About Competition in a Market