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How will the goods and services be produced

How will the goods and services be produced?

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1. The market system encourages and rewards those producers who are achieving productive efficiency, i.e., least-cost production.

2. Least-cost production techniques include: locating firms in the optimum location considering resource prices, resource productivity, and transportation costs, available technology, and resource prices in general.

3. Most efficient technique will be the one that produces a given amount of output with the smallest input of scarce resources when both inputs and outputs are measured in dollars and cents.

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