In a market system, which of the following will eliminate high-cost producers, and allow only the low-cost producers to survive?
A) Competition
B) Money
C) A sovereign government
D) Specialization

Question

Quizplus · Accepted Answer

Competition drives producers to reduce their costs in order to offer lower prices to consumers, ultimately resulting in the elimination of high-cost producers who are unable to compete with their lower-cost counterparts. Money, specialization, and a sovereign government do not necessarily lead to the elimination of high-cost producers.

In a Market System, Which of the Following Will Eliminate