Which of the following is most likely the result of healthy competition in a competitive market?

• A. Higher barriers to entry for new firms
• B. Lower prices and improved product quality for consumers
• C. Reduced consumer choice
• D. Monopolistic control over market supply

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the concept of a competitive market, where many firms compete freely without significant barriers to entry or exit.
2. Step 2: Recall that healthy competition typically leads to firms striving to attract consumers by offering better value, which often means lowering prices and improving product quality.
3. Step 3: Recognize that higher barriers to entry and monopolistic control are characteristics of less competitive markets, not healthy competition.
4. Step 4: Note that reduced consumer choice is usually a result of monopolies or oligopolies, not competitive markets where many firms offer diverse products.
5. Step 5: Conclude that the most likely result of healthy competition is lower prices and improved product quality for consumers, as firms compete to gain market share.