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Producers operating in a free market economy are more eff...

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

A.

The existence of competition

B.

The very few number of participants

C.

The commitment of the shareholders

D.

Government regulation of their activities

Correct answer is A

In a free market economy, there is efficiency as a result of competition among producers. It also known as capitalist economy in which the price of the goods are fixed by price mechanism.