Question

In capitalism, what does competition do for consumers? A. It limits the number of choices consumers have. B. It prevents consumers from being entrepreneurs. C. It lets consumers create monopolies. D. It keeps prices fair for consumers. Please select the best answer from the choices provided A B C D

Answer 1

Answer:

The best options is:

D. It keeps prices fair for consumers.

Explanation:

In capitalism, anyone can become a producer or manufacturer and start selling their products to consumers. That means there is competition between different producers, since they will each want consumers to buy their products so that they (the producers) can profit from selling. To achieve that, they are more likely to establish better/lower prices. That way, the chances of attracting consumers to buy their products increase. In a system that is not capitalist, it may very well be that there is only one producer for that product. In that case, consumers would have no choice but to buy that product for whatever price it is sold at.