QUESTION IMAGE
Question
what is one downside for consumers to competition in a free - enterprise system?
consumers must be knowledgeable.
consumers have limited choices.
the quality of goods often suffers.
the price of goods often decreases.
In a free - enterprise system with competition, businesses offer a wide range of products. To make good choices, consumers need to be informed about product features, quality, prices, etc. Limited choices (B) are not a downside of competition (competition usually increases choices). In a competitive market, quality often improves (not suffers, so C is wrong) as businesses try to out - perform rivals. Price decrease (D) is generally a positive for consumers. So the downside is that consumers must be knowledgeable.
Snap & solve any problem in the app
Get step-by-step solutions on Sovi AI
Photo-based solutions with guided steps
Explore more problems and detailed explanations
A. Consumers must be knowledgeable.