Correct Response: B. A free-market system is more likely to produce a high quality product for consumers than is a monopoly. Free market producers compete with one another to create better products and provide consumers with more choices for products to purchase. A free-market system is based on supply and demand determined by consumers' wants and needs, not a monopoly (A). A free-market system offers more choices since producers are constantly competing to gain market share, whereas a monopoly reduces consumer choice (C). In a free-market system, producers also compete to push prices lower in order to gain market share. A monopoly dominates the market and controls the pricing. The focus is to eliminate competition so consumers have no choice but to purchase their products at inflated prices (D).
