Question

A belief that profits tend to breed competition and that excess profits tend to breed ruinous competition.

True
False

Answer 1

The belief that profits tend to breed competition and that excess profits tend to breed ruinous competition is true in business.

Step-by-step explanation:

The belief that profits tend to breed competition and that excess profits tend to breed ruinous competition is true.

Competition from firms with better or cheaper products can reduce a business's profits and potentially drive it out of business. This can lead to a loss of income or job losses for workers.

In market economies, competition is generally seen as a positive force that drives innovation, improves products, and benefits consumers.