According to the passage on free market economics, selling a commodity at a price that is not more than that charged by competitors is how regarded?

Introduction / Context:
This question asks how free market advocates regard the behaviour of large firms that avoid pricing their products above their competitors. The passage explains that such behaviour is well known and fits within free market expectations.

Given Data / Assumptions:
• The passage states that each large firm will act with consideration of its own needs and thus avoid selling its products for more than its competitors charge.
• It then says that this is commonly recognized by advocates of free market economic theories.
• The question paraphrases this situation as selling a commodity at a price not more than that charged by competitors.
• We must match this behaviour with how it is seen by free market advocates.

Concept / Approach:
The phrase commonly recognized indicates that this behaviour is accepted and expected within free market theory. It is neither rejected nor seen as suspicious. Thus, the correct option must include the idea of recognition by the advocates of these theories.

Step-by-Step Solution:
Step 1: Locate the part of the passage that describes how firms price their products relative to competitors. Step 2: Note the phrase commonly recognized by advocates of free market economic theories. Step 3: Understand that commonly recognized means known and accepted, not opposed or rejected. Step 4: Compare the options to find the one that reflects this neutral acceptance. Step 5: Select the option saying recognized by the advocates of the free market theories.

Verification / Alternative check:
Imagine how free market advocates would react to such behaviour: it fits their model of rational pricing in competitive markets. Therefore, they would recognise it as normal, not attack it as wrong.

Why Other Options Are Wrong:
Rejected by the free market system: This contradicts the passage and is not supported by the text.
Opposed by the advocates of the free market theories: The passage says the opposite, using the phrase commonly recognized.
Considered suspicious by the free market theorists: Nothing in the passage suggests suspicion; the tone is descriptive and neutral.

Common Pitfalls:
Some students misinterpret any deviation from pure price competition as suspicious, but the passage explicitly states that this specific behaviour matches free market expectations and is recognised, not condemned.

Final Answer:
The correct answer is recognized by the advocates of the free market theories, because the passage clearly states that free market advocates commonly recognise this pricing behaviour by large firms.