In a competitive market, firms acting in their own interest will ______ total industry costs of production.
A) maximize
B) minimize
C) eliminate
D) exaggerate

Question

Quizplus · Accepted Answer

In a competitive market, firms acting in their own interest will minimize total industry costs of production. This is because firms will produce at the point where marginal cost equals marginal revenue, and this point is the point at which total costs are minimized.

In a Competitive Market, Firms Acting in Their Own Interest