In a Free Market,producers' Desires to Maximize Profit

question 73

Multiple Choice

In a free market,producers' desires to maximize profit

• A) inevitably lead to rising market prices.
• B) are inconsistent with incentives to introduce new technology.
• C) guarantee that firms never take losses.
• D) cause firms to use the most efficient techniques.
• E) mean that government must control prices to prevent producers from overcharging consumers.

---

Definitions:

Fundamental Attribution Error

A cognitive bias that involves placing undue emphasis on internal characteristics to explain someone else's behavior in a given situation, rather than considering external factors.

Perceptual Errors

Mistakes in judgment that occur due to inaccuracies in the perceptual process, leading to incorrect interpretations of information.

Competencies

A set of defined skills, knowledge, abilities, and attributes that contribute to successful performance in a job or task.

International Move

The process of relocating to a different country for purposes such as employment, study, or personal reasons, which involves adapting to new cultures and regulatory environments.