If an economic agent's returns to entrepreneurship are greater than his opportunity cost of entrepreneurship,he will ________.
A) most likely choose to be an entrepreneur
B) most likely not choose to be an entrepreneur
C) always make profits if he chooses to be an entrepreneur
D) always incur losses if he chooses to be an entrepreneur

Question

Quizplus · Accepted Answer

If an economic agent's returns to entrepreneurship are greater than his opportunity cost of entrepreneurship, it means that the benefits he receives from entrepreneurship are higher than what he could have earned in his next best alternative. In such a case, the economic agent has an incentive to choose entrepreneurship as it offers greater net benefits. Therefore, he is most likely to choose to be an entrepreneur.

If an Economic Agent's Returns to Entrepreneurship Are Greater Than