Asked by
Gabrielle Osterland
on Dec 10, 2024Verified
If profit-seeking entrepreneurs are going to be successful, they must
A) produce a product that the consumers value more than the resources required for its production.
B) produce the product more cheaply than their rivals regardless of quality.
C) maximize the salaries of high-level management so they will be able to attract people who will work hard.
D) charge a higher price than their competitors so they can make economic profits in the long run.
Profit-Seeking Entrepreneurs
Individuals who start and run businesses with the primary goal of making a profit, often taking on financial risks in the pursuit of economic gains.
Economic Profits
The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, representing excess profit above normal expected returns.
Resources Required
The inputs needed for the production of goods or services, including time, labor, capital, and materials.
- Acknowledge the contribution of economic profits and losses to resource distribution and the indication of market conditions.
Verified Answer
SL
Learning Objectives
- Acknowledge the contribution of economic profits and losses to resource distribution and the indication of market conditions.