Firms That Fail to Compete with Lower Prices And/or Better

Multiple Choice

Firms that fail to compete with lower prices and/or better products will:

A) go bankrupt and increase economic efficiency.
B) go bankrupt and decrease economic efficiency.
C) have to merge with other companies to stay in business.
D) often increase economic efficiency if they stay in business even though they are making losses since this will increase competition in the market.