In a free-market system, the profit motive motivates producers to do which of the following?
Question 15b of 25 - Profit and the profit motive
- Maximum Attempts: 1
- Question Type: Multiple Choice
- Maximum Score: 2
- Question: In a free-market system, the profit motive motivates producers to do which of the following?
- Minimize costs and maximize revenues.
- Establish monopolistic competition.
- Specialize in providing a single good or service.
- Produce as many different goods and services as they can.
The correct answer is: Minimize costs and maximize revenues. Profit is the difference between costs and revenue, so reducing costs and increasing revenues leads to greater profit
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