2. The presence of competition in free markets:
a. Is undesirable because it results in unnecessary duplication of efforts
b. Usually results in better quality and lower prices
c. is rare, since most markets eventually evolve into monopolies
d. is undesirable, because one big firm can usually produce goods more efficiently
than a large number of small firms

Competition in the markets refers to the rivalry among businesses selling similar products to the same customers. Each business tries to find the best tactics to win more customers, make more revenues, or acquire a larger market share.

In a free-market economy, there are no restrictions on the number of businesses in an industry. The market will usually have many buyers and sellers. The sellers have to be creative and innovative to win more customers in a competitive environment. They develop and improve their products to gain a competitive advantage. In the end, consumers benefit due to the availability of a variety of quality goods at reasonable prices.