Final answer:
Economic progress for society as a whole is typically beneficial when an entrepreneur makes a large profit, as it often leads to better or less expensive products, increasing the welfare of consumers, profits for businesses, and incomes for employees.
Step-by-step explanation:
Economic analysis suggests that in a competitive market economy, when an entrepreneur has made a large profit, economic progress for society as a whole has normally been beneficial. The entrepreneur's success often indicates that they have introduced a new or improved product to the market. This in turn can lead to lower prices and greater variety, which benefits consumers. Moreover, when businesses offer better or less expensive products, they can increase their profits. This profitability may result in higher incomes for employees and can create wider benefits for the economy. The gains from such entrepreneurial activities tend to outweigh the losses, leading to a net positive effect for the nation.
It is important to note that while competition stimulates innovation and keeps prices low, large-scale production can lower average costs even further. However, real-world markets are seldom perfectly competitive. As a result, governments may need to intervene to ensure a fair balance between the benefits of large-scale production and maintaining a competitive market, especially when businesses grow through mergers, which could otherwise reduce competition.