Economic profits may result from:
A) innovation.
B) risk taking.
C) exploiting market inefficiencies.
D) all of the above.
E) a and b

Question

Quizplus · Accepted Answer

Economic profits can result from a combination of innovation, risk taking, and exploiting market inefficiencies. Innovations such as new products or production processes can lead to a competitive advantage and increased profits. Risk taking can involve investing in new ventures or expanding into new markets, which can also result in greater profits. Exploiting market inefficiencies can involve identifying and taking advantage of opportunities, such as buying low and selling high. All of these strategies can lead to economic profits.

Economic Profits May Result From