In a competitive market, profit can be considered a reward to businesses that
A) produce a good that consumers value more highly than its component resources.
B) reduce the value of resources used as inputs in production.
C) prohibit rival firms from entering the market and competing.
D) control costs, rather than following the wishes of consumers when deciding what products to produce.

Question

Quizplus · Accepted Answer

Profit is a reward for businesses that efficiently allocate resources to produce goods that consumers value more than the cost of the resources used, indicating successful value creation.

In a Competitive Market, Profit Can Be Considered a Reward