Economic profits and losses
A)are both considered by economists to be a part of production costs.
B)are essential to the reallocation of resources from less desired to more desired goods.
C)have no influence on the composition of domestic output.
D)equalize the distribution of income in the long run.

Question

Quizplus · Accepted Answer

Economic profits and losses signal to producers where resources are most valued, guiding the reallocation of resources to more desired goods and services.

Economic Profits and Losses