Final answer:
The statement that only profit-seeking organizations face competition is false. Competition affects a wide range of entities beyond just for-profit businesses, including non-profits and government sectors. Competition is prevalent and plays a crucial role in innovation, efficiency, and the overall economy.
Step-by-step explanation:
The statement 'Only profit-seeking organizations face competition' is false. Competition is a fundamental aspect of the market that affects not only profit-seeking businesses but also non-profit organizations, governmental agencies, and other entities. For-profit businesses encounter competition from other firms offering better or cheaper products, which can impact their earnings and market presence. However, this concept extends beyond merely profit-driven entities. Non-profits compete for funding, volunteers, and attention to their causes. Governmental organizations may compete for budget allocations and project approvals. Thus, competition is ubiquitous and not limited to profit-seeking businesses.
Moreover, while top executives of firms might prefer a monopoly to ensure high profits without the stress of competition, the reality is that most businesses operate in competitive environments where they must innovate and improve efficiency to survive. This competition can lead to better products and services for consumers, which is often seen as a net gain for the economy.