Sovi.AI - AI Math Tutor

Scan to solve math questions

QUESTION IMAGE

which best explains how markets determine who should make products? pro…

Question

which best explains how markets determine who should make products? products should be made by the producers who:
have gained the least producer surplus.
can make them at the lowest marginal cost.
create the fewest negative externalities.
have the lowest total cost.

Explanation:

Brief Explanations

In a market, producers with the lowest marginal cost can offer products at a more competitive price. This allows them to attract more customers and gain a larger market share. Lower marginal cost means they can produce an additional unit of the product at a lower cost compared to other producers. This efficiency in production gives them an advantage in the market, making them the preferred choice for producing the product. Producers with the lowest marginal cost are more likely to maximize their profits and contribute to the overall efficiency of the market.

Answer:

B. can make them at the lowest marginal cost.