In a free-market system, producers are motivated to reduce cost…
Question 15c of 25 - Profit and the profit motive
- Maximum Attempts: 1
- Question Type: Multiple Choice
- Maximum Score: 2
- Question: In a free-market system, producers are motivated to reduce costs and increase revenues because of which of the following?
- Marginal analysis.
- The profit motive.
- Opportunity costs.
- The production possibilities frontier.
The correct answer is: The profit motive. The quest for profit drives producers in a freemarket system, and profit is calculated by subtracting costs from revenues.
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