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

question 195

Multiple Choice

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.