In a market system, more resources will move toward an industry and expand its production if the industry has A) positive revenues. B) positive costs. C) TC TR.

Question

In a market system, more resources will move toward an industry and expand its production if the industry has
A) positive revenues.
B) positive costs.
C) TC < TR.
D) TC > TR.

Quizplus · Accepted Answer

In a market system, resources will move toward an industry and expand its production if the industry's total revenue (TR) exceeds its total costs (TC), indicating profitability. This is represented by the condition TC < TR.

In a Market System, More Resources Will Move Toward an Industry