Under laissez-faire, output selection is determined by
A)consumer preferences.
B)production costs.
C)firms' desires to make profits.
D)All of the responses are correct.

Question

Quizplus · Accepted Answer

Under laissez-faire, output selection is determined by all of the factors listed, including consumer preferences, production costs, and firms' desires to make profits. In a free market, firms are incentivized to produce goods and services that are in high demand by consumers and that can be produced at a low cost in order to maximize profits.

Under Laissez-Faire, Output Selection Is Determined by