Final answer:
Measurement-Managed Firms succeed primarily due to efficient resource allocation, proactive adaptation to market conditions, and successful navigation of external factors. These firms maintain competitiveness and minimize business failures, which are sometimes a necessary part of a market-oriented economy's natural cycle.
Step-by-step explanation:
The question asks why Measurement-Managed Firms succeed, suggesting that such firms are able to succeed through efficient resource allocation, among other potential factors. The success of a firm can be attributed to a number of factors including its ability to allocate resources efficiently, navigate external factors, maintain resilience against competition, and sometimes even an element of random chance.
Firms may cease to exist when they fail to make profits due to various reasons such as poor management, non-productive workers, or harsh competition. Market failures typically occur when there is inadequate competition, insufficient information, immobility of resources, and externalities.