In a market system,profits
A) are unfair.
B) are too high.
C) signal to entrepreneur what to produce.
D) all of the above

Question

Quizplus · Accepted Answer

Profits in a market system serve as an incentive for entrepreneurs to produce goods and services that consumers demand. The pursuit of profit encourages innovation and efficiency. Thus, profits signal to entrepreneurs what to produce in a market system. Choices A and B are not correct as profits are not inherently unfair or too high, as they are based on market forces and competition.

In a Market System,profits