In perfectly competitive markets, the incentives for _____ help firms achieve efficiency in production.

Question

Quizplus · Accepted Answer

In perfectly competitive markets, firms are incentivized to minimize costs to achieve efficiency in production. This is because, in such markets, firms are price takers and can only control their costs to maximize profits. Cost minimization leads to the most efficient use of resources, which is a key characteristic of perfectly competitive markets.

In Perfectly Competitive Markets, the Incentives for _____ Help Firms