Competition fosters efficiency and low prices becauseMultiple Choicebuyers will have a limited choice of goods and services.the government regulates the prices of goods and services.a decreased supply of goods and services depresses prices.producers have to offer the best products at the most reasonable price.

In perfect competition, if the market price of the product is initially higher than the minimum average total cost faced by the firms, thenMultiple Choicesome firms will exit the industry and the industry supply will decrease.other firms will enter the industry and the industry supply will increase.some firms will exit the industry and the industry supply will increase.other firms will enter the industry and the industry supply will decrease.

For a firm to price discriminate,Group of answer choicesit must have some market power.it must be regulated by the government.it must be a natural monopoly.consumers must tell the firm what they are willing to pay for the product.

Markets fail to allocate resources efficiently whenGroup of answer choicesproperty rights are not well established.demanders and suppliers cannot agree on a price.goods are rival in consumption and excludable.too many buyers and sellers exist in the same market.

Markets can:multiple choicemake buyers and sellers better off.provide unlimited goods and services.force producers to make things they do not want to make.force buyers to buy things they do not want to buy.

Compared to noncompetitive markets, competitive markets:multiple choiceproduce a more expensive level of output.maximize the gains from trade.produce at the same price.significantly affect the market price.