Question

Why is competition among businesses important in a capitalist economic system? *

Competition ensures that all products will be good.
Competition affects how much products cost.
Competition determine who makes the goods.
Competition keeps the prices of goods the same.

Answer 1

The answer would be B

Answer 2

Answer: Second Option: Competition affects how much products cost.

Explanation: The principle of competition forces businesses to maximize efficiency and offer their products at the lowest prices the market will bear, lest they get put out of business by more efficient and better-priced competitors.

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