Which of the following is not a likely reason why a small business in a free enterprise system should seek the ideal combination of price charged and quantity supplied?
A) To maintain goodwill among customers
B) To maximize profits
C) To avoid surpluses and shortages
D) To avoid government regulation
E) To discourage competition

Question

Quizplus · Accepted Answer

Avoiding government regulation is not a likely reason why a small business in a free enterprise system should seek the ideal combination of price charged and quantity supplied. While avoiding government regulation may be a goal of some businesses, it is not directly related to the pricing and supply decisions that a small business must make in order to operate effectively in a competitive market. The other choices listed are all important reasons why a small business should seek to maximize profits by finding the ideal price and quantity combination.

Which of the Following Is Not a Likely Reason Why