A characteristic of the market system is:A. Extensive use of direct methods of productionB. A focus on labor, as opposed to capital resourcesC. Reliance on the use of capital goods to expand total outputD. Avoidance of producing goods that do not satisfy consumer wants directly

Question

Aaron Sims

Business

17 November, 14:21

A characteristic of the market system is:A. Extensive use of direct methods of productionB. A focus on labor, as opposed to capital resourcesC. Reliance on the use of capital goods to expand total outputD. Avoidance of producing goods that do not satisfy consumer wants directly

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Ryann · Answer 1

Answer: Option C

Explanation: In a market system, the suppliers are willing to produce those goods that have value to the consumers directly or indirectly. The focus is on maximizing output for achieving the economies of scale so that goods could be sold at a lower price, thus, increasing the sales.

Hence, the suppliers in case of market system use more of capital goods as they produce more output and relatively shortens the cost per piece.

Thus, the correct option is C.