How does profit ration entrepreneurship?
What will be an ideal response?
The typical accounting profit is a normal profit. An entrepreneur wants to earn at least a normal profit to stay in a line of business. If an entrepreneur’s current accounting profit is less than the normal profit that could be earned elsewhere in the economy, then the entrepreneur has incentive to shift his or her entrepreneurial resources to another business. In this way, profit serves as an allocate of entrepreneurial resources to the most valued businesses.
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The amount of revenues that sellers actually receive over and above the minimum acceptable amount that they are willing to receive for selling a product is called
A. production costs. B. producers' supply. C. consumer surplus. D. producer surplus.
Encouraging firms to invest in research and development and individuals to engage in creative endeavors such as writing novels is one justification for
a. resource monopolies. b. natural monopolies. c. government-created monopolies. d. breaking up monopolies into smaller firms.
Based on the graph showing the median voter, if candidate A took a position at VM, candidate B would have the best chance to win the election by taking a position ______.
a. as far as possible from VM
b. just to the left of V2
c. just to the right of V1
d. as near as possible to VM
The liquidity-preference model was first introduced in:
A. 2008 by Ben Bernanke. B. 1776 by Adam Smith. C. 1936 by John Maynard Keynes. D. 1970 by John Kenneth Galbraith.