The Value of Output Is Maximized in a Competitive Market

question 10

Multiple Choice

The value of output is maximized in a competitive market because:

• A) entrepreneurs are always on the lookout to move resources into higher-value uses, in an effort to create more profit for themselves.
• B) government taxation reduces the profit-motive of entrepreneurs.
• C) social planners are better able to plan and make resource decisions when there are many buyers and sellers.
• D) it is easy for an industry dominated by a single firm to achieve economies of scale, producing output at a low-cost.

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Definitions:

Interesting Events

Occurrences or activities that attract attention due to their appealing, unusual, or exciting qualities.

Grasp

The ability to seize, hold, or grip something with one's hand or hands.

Hold

To maintain possession, control, or position of something, often implying a degree of steadiness or resistance.

Grabs Objects

This refers to the action of seizing or clasping objects, typically seen as a developmental milestone in infants as they learn to interact with their environment.