In a competitive market, the incentives that entrepreneurs have to seek profit and avoid losses align with the social incentive to move labor and capital out of low-value industries and into high-value industries.

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In a competitive market, entrepreneurs are incentivized to seek profit and avoid losses, which aligns with the social incentive to allocate labor and capital towards high-value industries and away from low-value ones.

In a Competitive Market, the Incentives That Entrepreneurs Have to Seek