Asked by
Brett Lorscheider
on Dec 11, 2024
Verified
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.
Economic Inefficiency
A situation in which resources are not used in the most effective way, leading to potential losses in productivity or value.
Consumer Preferences
The specific desires, likes, and dislikes that influence the purchasing behavior of consumers.
Economic Profit
The profit a company makes after deducting both its explicit (actual cash outflows) and implicit (opportunity) costs.
- Identify the dynamic nature of competition and its impact on consumer choice and business strategies.
- Appreciate Adam Smith's theory on the dynamic process of competition.
Verified Answer
NS
Learning Objectives
- Identify the dynamic nature of competition and its impact on consumer choice and business strategies.
- Appreciate Adam Smith's theory on the dynamic process of competition.