As entrepreneurs move resources into and out of industries seeking higher profit rates, the total value of production gets maximized.

Question

Quizplus · Accepted Answer

This statement is true as entrepreneurs, by moving resources into industries with higher profit rates, are able to increase the overall value of production. This results in greater efficiency and the allocation of resources to their most productive uses, making it possible to maximize the total value of production.

As Entrepreneurs Move Resources into and Out of Industries Seeking