What mechanism assures that producers use inputs efficiently?
A)Governmental regulations determining the allocation of resources
B)Altruism
C)The desire for profit
D)An innate desire to be efficient
E)All of the responses are correct.

Question

Quizplus · Accepted Answer

The desire for profit drives producers to use inputs efficiently, as they aim to minimize their costs and maximize their revenue. This creates an incentive for producers to find more efficient ways of using resources, resulting in higher productivity and profitability.

What Mechanism Assures That Producers Use Inputs Efficiently