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.
The correct option is "c". The dynamic process of competition provides consumers with alternative suppliers and thus a mechanism with which they can discipline sellers.
When there is a competition as a dynamic
process then it implies that the firms that are individual in a market, will use
price competition along with other types of competition to achieve the dollar
votes of clients.
