It acts as a reward for firms that meet consumer demand efficiently

It ensures that there is always a surplus in the market

It is a tax paid to the government to fund infrastructure

It encourages firms to ignore consumer preferences to save money

Government priorities and planning targets

Consumer preferences expressed through demand

Firm incentives for profit

Competitive price adjustments

To prevent consumers from making any choices

To ensure quantity supplied always equals zero

To correct market failures and achieve socially optimal levels

To eliminate all private competition

lower taxes

increased market failure

higher production costs

decreased consumer demand