In a market economy, what determines whether an entrepreneur will continue in business or terminate the production of a new product?
A)government regulations
B)licensing by industrial development agencies
C)the profit or loss of the business
D)the taxes paid to the government relative to the subsidies received

Question

Quizplus · Accepted Answer

In a market economy, the decision to continue or terminate a business is primarily determined by the profit or loss it generates. If a product is profitable, the entrepreneur is likely to continue production; if it incurs losses, they may decide to stop.

In a Market Economy, What Determines Whether an Entrepreneur Will