What is an entrepreneur and what are the things that the entrepreneur must do to translate the cost of production into supply? Why is there a scarcity of entrepreneurial talent?

Question

Quizplus · Accepted Answer

The Answer is An entrepreneur is an individual with creativity and organizational skills who believes that she sees an opportunity to sell an item at a price higher than the average cost of producing it. To move from cost to supply entrepreneurs must convince individuals who own factors of production that they want to provide the resources needed to produce a good. They must also decide on many dimensions of production. Not only must entrepreneurs decide how much to produce, they must decide on the quality of the product, methods of delivery, size of inventory, etc. Good entrepreneurs must take all relevant margins into account. The entrepreneurial role in the real world is much more challenging and complex than it seems in the basic model where the level of output is the only dimension over which variation can be made.

What Is an Entrepreneur and What Are the Things That