In a market economy, what determines whether an entrepreneur will continue in business or terminate the production of a new product?
A) Government regulations.
B) Licensing by industrial development agencies.
C) The profit or loss of the business.
D) The taxes paid to the government relative to the subsidies received.

Question

Quizplus · Accepted Answer

In a market economy, the main determinant of an entrepreneur continuing in business or terminating the production of a new product is the profit or loss of their business. A business that is profitable will likely continue producing and expanding, while a business that is operating at a loss may have to terminate its operations. Government regulations, licensing, and taxes may affect a business's profitability, but ultimately it is the profit or loss that drives the decision-making process for entrepreneurs.

In a Market Economy, What Determines Whether an Entrepreneur Will