In a Free Market There Are Virtually No Restrictions, or at Best

question 246

True/False

In a free market there are virtually no restrictions, or at best few restrictions, on how factors of production can be employed.

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Definitions:

Profit-maximizing Output

The level of production at which a firm achieves the highest possible profit, where marginal cost equals marginal revenue.

Total Cost

The sum of all costs required to produce a certain amount of a good or service, including fixed and variable costs.

Duopoly

A two-firm oligopoly.

Demand Curve

A graph depicting the relationship between the price of a good and the quantity demanded by consumers, typically sloping downwards from left to right.