Competition in a market system denotes a condition where
A) the diffusion of economic power limits its potential abuse.
B) any given product can be purchased at a wide range of prices.
C) contractual agreements among individual ﬁrms are restricted and avoided.
D) a few large, dominant sellers are constantly jostling for market share.

Question

Quizplus · Accepted Answer

Competition in a market system is characterized by the diffusion of economic power among many buyers and sellers, which inherently limits the potential for any single entity to abuse that power. This ensures a more equitable and efficient distribution of resources.

Competition in a Market System Denotes a Condition Where