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How does an entrepreneur create wealth in society?

A) Minimizing production
B) Maximizing expenses
C) Adding value
D) Ignoring market trends

User Sindhu
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1 Answer

6 votes

Final answer:

An entrepreneur creates wealth in society by adding value to goods and services that meet the market's demand, thus enhancing economic efficiency and contributing to societal benefits.

Step-by-step explanation:

An entrepreneur creates wealth in society by adding value to goods and services that are valued in the market. Entrepreneurs utilize the economy's scarce resources efficiently to generate products and services that have greater worth than the sum of their inputs. This process involves making important decisions regarding what should be produced, how it should be produced, and for whom it should be produced, considering the opportunity costs and the benefits of the production choices on the production possibilities frontier. The balance of society's costs and benefits occurs when the market price (P) equals the marginal cost (MC), leading to the greatest overall benefit to society.

User Terhechte
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