Question

Question
What is one effect of the profit motive?
Responses

It gives companies an incentive to raise wages.
It gives companies an incentive to raise wages.

It prevents foreign companies from underselling domestic producers.
It prevents foreign companies from underselling domestic producers.

It enables the government to have a budget surplus.
It enables the government to have a budget surplus.

It pushes companies to seek to eliminate competition.

Answer 1

It pushes companies to seek to eliminate competition.

Explanation: The profit motive drives firms to increase profits by gaining market share and reducing rivals—through lower prices, innovation, mergers, or other competitive strategies.