The presence of competition in free markets:
A)Is undesirable because it results in unnecessary duplication of efforts.
B)Usually results in better quality and lower prices.
C)Is rare,since most markets eventually evolve into monopolies.
D)Is undesirable,because one big firm can usually produce goods more efficiently than a large number of small firms.

Question

Quizplus · Accepted Answer

The presence of competition in free markets usually results in better quality and lower prices. This is because firms are forced to innovate and create more efficient production methods in order to compete for customers. This benefits consumers by providing them with more choices and better prices.

The Presence of Competition in Free Markets