Question

Which economic practice helps motivate companies to keep prices low and improve product quality?


combination
combination

consolidation
consolidation

competition
competition

overproduction
overproduction

Answer 1

The economic practice that helps motivate companies to keep prices low and improve product quality is **competition**. When multiple companies offer similar products or services, they are incentivized to attract customers by lowering prices and enhancing the quality of their offerings. This dynamic fosters innovation and efficiency in the marketplace.