Firms that make a profit have increased the value of the resources they used; their actions created
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Firms that make a profit have increased the value of the resources they used; their actions created wealth. In contrast, the actions of firms that make losses reduce wealth. The discovery and undertaking of profit-making opportunities are key ingredients of economic progress.” Evaluate the statement.
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The statement provided highlights the fundamental economic concept that profitable firms increase the value of the resources they use thereby creating wealth while unprofitable firms reduce wealth It ...View the full answer
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Related Book For
Economics Private And Public Choice
ISBN: 9780357133996
17th Edition
Authors: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
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