In a market economy, ﬁrms move resources into the production of goods for which consumers' willingness to pay is relatively low.

Question

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In a market economy, firms aim to produce goods and services that consumers are willing to pay for at a price that covers the costs of production, including a profit margin. Therefore, firms are unlikely to invest resources into producing goods with low consumer demand or low willingness to pay, as it would result in low sales and profitability.

In a Market Economy, ﬁRms Move Resources into the Production