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In a free enterprise system, economic profits play an important role in guiding the decisions made by the thousands of competing independent resource owners. a.Explain

In a free enterprise system, economic profits play an important role in guiding the decisions made by the thousands of competing independent resource owners.

a.Explain what is economic profit. Provide an example to support your answers (5)

b.Why do different resource owners obtain different profits, even when operating in the same industry? Explain (5)

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