Question

If the resources that an entrepreneur uses have a higher value if used for

other production, the entrepreneur will

O break even

o lose money

O be bankrupt

O make a profit

Answer 1

Answer: Lose money

Step-by-step explanation:

An entrepreneur should endeavor to use resources on projects that will yield the greatest value. If they invest in something else, they would lose money because they would be earning less in the project they chose than in the optimum one that would have given more profit.

For instance, an entrepreneur had $10,000. They could have invested in 2 projects, one returns $20,000 and the other returns $26,000. By choosing the project that yields $20,000, they would lose the extra $6,000 the other project would have given.