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What is the goal of all economic decisions in a market economy?

A.
profit minimization
B.
benefit maximization
C.
free enterprise
D.
democracy

2 Answers

4 votes

A.) Maximize Profit!

User Meera
by
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2 votes

The goal of all economic decisions in a market economy is benefit maximization.

Answer: Option B

Explanation:

It is evident that in a market economy, there is a great competition between the market players in the same segments. This competition results in making compromises on profit in order to impress more customers towards oneself.

To keep the business profitable despite the competition existent in the market, the entrepreneurs devise methods of cutting manufacturing, marketing, sales, and services costs. This deliberate reduction of initial costs is in order to comply with the goal of benefit maximisation.

User Pktangyue
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