When sellers in a perfectly competitive market attempt to maximize their own profits,they ________.
A) eventually end up minimizing the value of total production
B) earn positive economic profits even in the long run
C) move scarce resources to their highest-valued use
D) eventually divert resources to their lower-valued uses

Question

Quizplus · Accepted Answer

In a perfectly competitive market, sellers cannot influence the market price of their goods. As a result, they can only maximize their profit by producing at the point where their marginal cost equals the market price. By doing this, they are ensuring that they are using their resources in the most efficient and highest-valued way. Therefore, option C is the correct answer. Options A, B, and D are incorrect because they do not align with the behavior of sellers in a perfectly competitive market.

When Sellers in a Perfectly Competitive Market Attempt to Maximize