In a Competitive Market, Profit Can Be Considered a Reward

question 40

Multiple Choice

In a competitive market, profit can be considered a reward to businesses that

• A) produce a good that consumers value more highly than its component resources.
• B) reduce the value of resources used as inputs in production.
• C) prohibit rival firms from entering the market and competing.
• D) control costs, rather than following the wishes of consumers when deciding what products to produce.

---

Definitions:

Short-Term Memory

Short-term memory is a cognitive system with a limited capacity that is responsible for temporarily holding information available for processing.

Baddeley and Hitch

Psychologists who proposed the model of working memory, explaining how the brain processes and stores short-term information.

Atkinson and Shiffrin

Psychologists who proposed the multi-store model of memory, which includes the sensory register, short-term memory, and long-term memory.

Memory Storage

The process of retaining information over time, which is critical for learning, decision-making, and personal identity.