Which of the following observations is true?
A)Free markets will achieve all of society's goals.
B)The ability to buy goods is divided equally among consumers.
C)The market deals with efficiency in production through the profit motive.
D)The market system encourages firms to use inputs wastefully.

Question

Quizplus · Accepted Answer

The market deals with efficiency in production through the profit motive. This statement is true as firms in a free market system seek to maximize their profits, which motivates them to operate efficiently and minimize their costs of production.

Which of the Following Observations Is True