The Main Functions of Markets Include

question 41

Multiple Choice

The main functions of markets include

• A)promoting the social interest,but not the self-interest.
• B)selling goods,but not factors of production.
• C)enabling buyers and sellers to get information about each other.
• D)establishing a physical location for business transactions.
• E)promoting the self-interest,but not the social interest.

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Definitions:

Economic Profits

Profits that exceed the opportunity costs of all resources employed by the firm, reflecting earnings above the normal expected return.

Inputs Prices

The cost of the resources used in the production process, including raw materials, labor, and overhead.

Labor and Capital

Labor and capital are the two main factors of production; labor refers to human work, while capital refers to assets used in producing goods and services.

Profit-maximizing Level

The output level at which a firm maximizes its profits, determined by the point where marginal cost equals marginal revenue.