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An economist argues that the purpose of the competitive market system is to destroy businesses. The competitive market system acts like the cyborg played by
An economist argues that "the purpose of the competitive market system is to destroy businesses. The competitive market system acts like the cyborg played by Arnold Schwarzenegger in the movie The Terminator, wiping out any firm that can't get out of its way. Without the destruction caused by competition, the economy could not achieve productive and allocative efficiency." a. Which of the following regarding the above statement is true? A. The firms that survive are those that can produce at minimum long-run average cost while producing goods and services that consumers are willing and able to buy. B. This is a fair analogy. C. In the long run, competition among firms in a competitive market forces firms that incur losses to shut down. D. All of the above
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