Which of the following best help entrepreneurs identify low-value industries versus high-value industries?
A) marginal costs
B) price signals
C) central planner
D) total costs

Question

Quizplus · Accepted Answer

Price signals are the best way for entrepreneurs to identify low-value industries versus high-value industries. Price signals are the indicators of demand for a particular product or service, based on the price people are willing to pay for it. Industries with high-value products or services will typically have higher price signals, as people are willing to pay more for them. Conversely, industries with low-value products or services will have lower price signals, as people are not willing to pay as much for them. Therefore, entrepreneurs can use price signals to determine which industries are worth pursuing and which ones are not.

Which of the Following Best Help Entrepreneurs Identify Low-Value Industries