In a competitive market economy, firms select the least-cost production technique because
A)such choices will result in full employment of available resources.
B)to do so will maximize the firms' profits.
C)this will prevent new firms from entering the industry.
D)"dollar voting" by consumers mandates such a choice.

Question

Quizplus · Accepted Answer

Firms in a competitive market economy aim to maximize their profits. By selecting the least-cost production technique, they can lower their production costs, which can lead to higher profits assuming sales prices and quantities remain favorable. This choice is driven by the desire to enhance profitability rather than the other options listed.

In a Competitive Market Economy, Firms Select the Least-Cost Production