The decision regarding “what to produce” is mainly influenced by:

CA Foundation · Business Economics · MTP · May 2026
The decision regarding “what to produce” is mainly influenced by:
(A) A. Income equality
(B) B. Administered prices
(C) C. Market demand and profit signals
(D) D. Central planning authority

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Market demand and profit signals

Topics: Theory of Demand and Supply

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