Question

an inefficient provider will have difficulty competing with efficient rivals

Answer 1

The statement is true.

An inefficient provider of goods and services will have an increased cost of production of goods and services which will make it difficult for an inefficient firm to compete with the efficient rivals having a low cost of production. Also an efficient firm will generally reduce prices with an entry of new firm which a new or an efficient firm cannot bear the loss and thus has to exit from the market because it will be earning negative profits in this case.