The profit motive drives entry and exit decisions.
Answer the following statement true (T) or false (F)
True
The basic incentive for producing goods and services is the expectation of profit.
You might also like to view...
According to Nobel laureate Douglass North, one reason why the Industrial Revolution occurred in England before many other countries was because the king in England consistently maintained control over the court system and the government
Indicate whether the statement is true or false
A default in the past makes it much more likely that a government will default again, even if the current government is a new regime with every intention of honoring its debts. Why might that be?
What will be an ideal response?
According to the kinked demand theory, when one firm raises its price, other firms will:
a. also raise their prices. b. refuse to follow. c. increase their advertising expenditures. d. exit the industry.
Using the income approach, an estimate of the value of capital worn out producing GDP is:
A. indirect business taxes. B. capital consumption allowance or depreciation. C. gross private domestic investment. D. capital erosion estimate.