Under perfect competition,A) resources are allocated among firms equitably.B) final products are distributed among households equitably.C) the system produces the goods and services consumers want.D) All of the above are correct.

Question

Under perfect competition,A)  resources are allocated among firms equitably.B)  final products are distributed among households equitably.C)  the system produces the goods and services consumers want.D)  All of the above are correct.

martin veltmann · Accepted Answer

Final Answer : C, Explanation :  Under perfect competition, the market mechanism leads to the production of goods and services that align with consumer preferences, as firms aim to maximize profits by responding to consumer demand. Choices A and B, regarding equitable allocation and distribution, are not inherent characteristics of perfect competition.

Under perfect competition,

A) resources are allocated among firms equitably.
B) final products are distributed among households equitably.
C) the system produces the goods and services consumers want.
D) All of the above are correct.

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Learning Objectives

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