In a market economy, what must an entrepreneur do in order to be successful?
A) Purchase resources at lower prices than rivals.
B) Produce a good that can be sold for more than its production cost.
C) Obtain large subsidies from the government.
D) Hire workers at low wage rates.

Question

Quizplus · Accepted Answer

To be successful in a market economy, an entrepreneur must produce a good that can be sold for more than its production cost, as this will generate a profit. Other factors, such as obtaining lower-priced resources and hiring workers at low wage rates, can certainly contribute to profitability, but ultimately it is the ability to sell a product at a higher price than it costs to make that determines success. Subsidies from the government may benefit a business, but they are not a requirement for success in a market economy.

In a Market Economy, What Must an Entrepreneur Do in Order