Competition Flashcards
What is one advantage of competition for firms?
Increased innovation and improvement of products.
True or False: Monopoly leads to higher prices for consumers.
True.
Fill in the blank: In a competitive market, firms are pressured to reduce ________ to attract customers.
prices.
What is a potential disadvantage of competition for firms?
Increased pressure on profit margins.
What is one advantage of a monopoly?
Ability to achieve economies of scale.
True or False: Competition can lead to market inefficiencies.
False.
What is a disadvantage of a monopoly for consumers?
Limited choices and higher prices.
In a competitive market, firms must focus on ________ to survive.
customer needs.
What is a key characteristic of a monopoly?
Single seller in the market.
Multiple Choice: Which of the following is NOT an advantage of competition? A) Lower prices B) Increased innovation C) Guaranteed profits
C) Guaranteed profits.
