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Producers operating in a free market economy are more eff...

Producers operating in a free market economy are more efficient as a resulf of?

A.

The existence of competition

B.

The very few number of participants

C.

The commitment of the shareholders

D.

Government regulation of their activities

Correct answer is A

Competition leads to efficiency because businesses that have fewer costs are more competitive and make more money. Innovation is encouraged because it provides a competitive edge and increases the chance for wealth.