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

A. the existence of competition
B. the very few numbers of participants
C. the commitment of the shareholders
D. government regulation of their activities

Correct Answer: Option A

A. the existence of competition

Explanation

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.