ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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They generally agree to share resources equally.
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They improve the quality of their goods to attract buyers.
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They look to the government to assign resources.
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They ration their goods equally among consumers.
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Detailed explanation-1: -It has the potential to drive costs (and prices) up. Marketing costs are increased and producers will try to pass these on to their customers. Inventions and innovations cost producers in time and research and development in order to be in front of their competitors.
Detailed explanation-2: -Competition in America is about price, selection, and service. it benefits consumers by keeping prices low and the quality and choice of goods and services high. Competition makes our economy work. By enforcing antitrust laws, the Federal trade Commission helps to ensure that our markets are open and free.
Detailed explanation-3: -Competition among sellers lowers costs and prices, and encourages producers to produce more of what consumers are willing and able to buy. Competition among buyers increases prices and allocates goods and services to those people who are willing and able to pay the most for them.
Detailed explanation-4: -Competition attenuates the incentive to do so and prompts firms to increase quality and/or decrease prices. In most models, the entry of new competitors leads to price reductions by putting more competitive pressure on market incumbents.