Card 1 of 23
Why do consumers usually pay less when rival firms undercut one another?
A
Firms entering and leaving create greater job instability than in a protected market.
B
Rivalry forces firms to charge less for the same good than a single seller would.
C
A firm that stops improving risks being overtaken by rivals.
D
They may cut quality, wages or safety instead of eliminating waste.
Card 1 of 23
2.5.3 Economic impact of competition Flashcards
23 flashcards on OCR GCSE Economics 2.5.3 Economic impact of competition: the key terms, formulae and calculations you need to recall for Component 01 and Component 02.