Under laissez faire, output selection is determined by
A)consumer preferences.
B)production costs.
C)firms' desires to make profits.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Under laissez faire, output selection is determined by a combination of consumer preferences, production costs, and firms' desires to make profits. Consumers express their preferences through their purchasing decisions, which in turn affect the production decisions made by firms. Firms, in turn, are motivated by the desire to make profits and will produce whichever goods or services are most likely to generate the highest profits given existing costs and consumer demand. Therefore, all of the choices listed above are correct.

Under Laissez Faire, Output Selection Is Determined by