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WAEC Economics 2018 Question 4

Question 4

Economic Systems

Producers operating in a free market economy are more efficient as a result of

  1. A.the existence of competition.
  2. B.the very few number of participants.
  3. C.the commitment of the shareholders.
  4. D.government's regulation of their activities.
Show the answer and explanation

Answer: A (the existence of competition.)

Explanation

Competition forces firms to cut costs and improve quality.