When competition is present and property rights protected and enforced, market prices will
A) discourage profit-seeking business firms from producing efficiently.
B) direct entrepreneurs toward production of goods that are inferior in quality.
C) encourage self-interested individuals to develop skills that are expected to be valuable in the future.
D) always decrease.

Question

Quizplus · Accepted Answer

Market prices, when competition is present and property rights are protected, provide signals and incentives for individuals to develop skills and produce goods and services that are valued by others, thus encouraging efficient and forward-looking economic behavior.

When Competition Is Present and Property Rights Protected and Enforced