Which type of market typically produces the highest level of output at the lowest price to consumers?

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Areli Love

23 August, 02:23

Which type of market typically produces the highest level of output at the lowest price to consumers?

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Milo Bush · Answer 1

A free market economy usually produces the highest level of output at the lowest price to consumers.

A free market economy is one in which private businesses compete for consumers. The goal of these private businesses is to make goods as efficiently as possible in order to keep their costs down. If they are able to keep costs down, this allows them to charge less for a product. If they are able to charge a small amount for a product, more consumers are likely to buy them.

This is why a free market economy usually results in a mass amount of goods and lower prices, as businesses must be effective and efficient when producing goods. Otherwise, they will not be competitive with other businesses.