Question

Producers compete with each other in capitalist economy to produce those goods and services which yield _________.

• A. no profits
• B. higher profits
• C. lower profits
• D. no loss

Answer 1

The correct option is B higher profits

Capitalist economy has private ownership where utilization of resources takes place for private gains therefore in this kind of economy only those goods are produced which are in high demand in the market which is leads to open competition in the market where all the producer compete with each other to yield higher profits.