The market system's answer to the fundamental question "How will the goods and services be produced?" is essentially

A) "With as much machinery as possible."
B) "Using the latest technology."
C) "By exploiting labor."
D) "In ways that minimize the cost per unit of output."

The market system's answer to the question of how goods and services will be produced is to minimize the cost per unit of output. This means that businesses will strive to find the most efficient and cost-effective ways to produce their goods and services in order to remain competitive in the market. This can involve incorporating new technology and machinery, but it is ultimately focused on minimizing costs. Exploiting labor or using the latest technology are not necessarily the primary goals of the market system.