Entrepreneurs Have the Incentive To

question 24

Multiple Choice

Entrepreneurs have the incentive to:

• A) follow the orders of the central planner.
• B) move resources into those industries with the lowest marginal costs.
• C) minimize marginal costs.
• D) move resources out of low-value industries and into high-value industries.

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Definitions:

Year 1

Refers to the first year in a given context, such as the first year of a company's operation, the initial year of a dataset, or the first year of the Gregorian calendar.

Urban Sales

Sales activities focused on customers located within urban areas, potentially involving strategies tailored to high-density populations.

Unit Variable Expenses

Costs that vary directly with the level of production or sales volume, calculated on a per unit basis.

Fixed Expenses

Costs that do not fluctuate with changes in production level or sales volume, such as rent and salaries.