The dynamic process of competition
a. provides profit-seeking sellers with little incentive to heed consumer preferences.
b. was shown by Adam Smith to be a major source of economic inefficiency.
c. provides consumers with alternative suppliers and thus a mechanism with which they can discipline sellers.
d. will permit business decision makers to earn long-run economic profit unless they are regulated by government officials.
C
You might also like to view...
The risk premium is negative when tastes are risk averse.
Answer the following statement true (T) or false (F)
If a firm is found guilty of violating any of the European Union competition laws, courts ________ impose fines and ________ sentence managers who have violated the law to jail.
A) can; cannot B) cannot; cannot C) can; can D) cannot; can
Which of the following mergers would result from the purchase of a computer chip company by IBM?
a. A horizontal merger. b. A vertical merger. c. A conglomerate merger. d. An interlocking merger.
If the real interest rate falls, then the:
A. Investment schedule will shift upward B. Investment schedule will shift downward C. Point moves along the investment schedule to the right D. Consumption schedule will shift downward