A purely competitive system minimizes production costs and, at the same time, tends to keep economy wide profits at a minimum.

Question

Quizplus · Accepted Answer

In a purely competitive system, firms are price takers and must produce at the lowest possible cost to remain competitive. This leads to a focus on efficiency and cost-cutting measures. However, with many firms operating in the same market, profits are spread thin and tend to be minimized economy-wide.

A Purely Competitive System Minimizes Production Costs And, at the Same