Question

In a free enterprise system, how does competition among business benefit consumers?

Answer 1

Answer:

C) by lowering prices

Explanation:

In a market economy, firms compete for market share through price. Thus, the higher the number of suppliers of the same product, the lower the market price tends to be. This is explained by the mechanisms of the law of supply and demand, according to which the larger quantity supplied tends to diminish the price. That is why the system of free competition is so desired by economists.

Answer 2

Hey there,

In a free enterprise system, how does competition among business benefit consumers?

Your correct answer would be "by lowering prices".

~Jurgen