Question

When profits occur in a competitive market economy, this indicates that consumers value the goods __ than the resources used to produce the,

Answer 1

In a competitive market economy, when profits occur, it indicates that consumers value the goods more than the resources used to produce them.

Step-by-step explanation:

In a competitive market economy, when profits occur, it indicates that consumers value the goods more than the resources used to produce them.

For example, if a business is able to sell a product at a higher price than it cost to produce, they will make a profit. This suggests that consumers are willing to pay more for the product because they value it highly.

On the other hand, if a business is not able to sell a product at a price that covers the cost of production, they will incur losses. This suggests that consumers do not value the product enough to pay a price that would generate profits.