Why does competition force firms to use the least-cost, most efficient, productive techniques?
Please provide the best answer for the statement.
If firms do not use the most efficient techniques, their rivals who do use more efficient methods will be able to charge lower prices and potentially take buyers from the less efficient seller. If the less efficient firm has to lower prices to match the competition without improving efficiency, it will eventually realize losses and in the long term will have to leave the industry unless it, too, uses the most efficient production methods.
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If you buy a new water skis and other new equipment for $2,500 and take a week off of your job, where you earn $1,000 a week, to go water skiing. The equipment you purchased was all produced in the United States
You think that the week was worth $4,000. As a result of your vacation, GDP changes by how much?
Assume the MPC is 0.75. To eliminate an AD shortfall of $200 billion, the government should
A. Increase taxes by $66.7 billion. B. Decrease spending by $50 billion. C. Increase spending by $50 billion. D. Increase spending by $800 billion.
Industrially advanced countries can best help developing countries by:
A. Establishing price supports for the products produced by DVCs B. Increasing tariffs and quotas on products produced by DVCs C. Increasing the flows of private capital to DVCs D. Increasing control over DVCs' capital markets
If the supply curve is more inelastic than the demand curve, then:
A. the sellers will bear a smaller tax incidence than the buyers. B. the sellers will bear a greater tax incidence than the buyers. C. the sellers will bear an equal tax incidence as the buyers. D. Any of these could be true.