How does a perfect market influence output?

Each firm adjusts its output so that its costs, including profit, are covered.

Different firms each strive to make more goods and capture more of the market.

Different firms make different amounts of goods, but some make a profit and others do not.

Each firm makes its output as large as possible even though some goods are not sold.

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Kyra

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4 November, 15:54

How does a perfect market influence output?

Each firm adjusts its output so that its costs, including profit, are covered.

Different firms each strive to make more goods and capture more of the market.

Different firms make different amounts of goods, but some make a profit and others do not.

Each firm makes its output as large as possible even though some goods are not sold.

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Cindy Robbins · Answer 1

The correct answer is Each firm adjusts its output so that its costs, including profit, are covered.

There are no companies which want to not sell all of their manufactured goods. In such a scenario, every company would strive to cover all costs and always end up profiting, it is not a thing where some companies accept losses since no company ever wants to have a loss, losses are just sometimes inevitable.