A Characteristic of the Market System Is

question 270

Multiple Choice

A characteristic of the market system is

• A) extensive use of direct or manual methods of production.
• B) a focus on labor, as opposed to capital resources.
• C) reliance on the use of capital goods in indirect modes of production.
• D) avoidance of producing goods that do not satisfy consumer wants directly.

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Definitions:

Average Fixed Costs

The total fixed costs of production divided by the number of units produced, representing the fixed cost per unit of output.

Total Costs

encompass all expenses incurred in the production of goods or services, including both fixed and variable costs.

Output Expands

When the production of goods or services increases in response to market demand or other factors.

Fixed Cost

Costs that remain constant regardless of the level of production or sales, such as lease payments and salaries.