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BA 206 Macroeconomics Class The Role of the Entrepreneur

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Q:-What must an entrepreneur do to earn a profit? (2) How do the actions of firms earning
profits influence the value of resources? (3) What happens to the value of resources when
losses are present? (4) If a firm making losses goes out of business, is this bad? Why or why
not?
(1)Entrepreneurs are responsible for development of new products that can help an
organization to earn profits. New ideas related products posses’ significant risk of
failures. Entrepreneurs take important decisions by figuring out which projects can
generate profits Organizations invest their resources in new projects and products in
hope of profits. The success of entrepreneur depends on customer`s acceptability of
new product or idea (Gwartney D., Stroup L., Sobel S. & Macphresson A., 2011). In order
to earn profits entrepreneur should convert and rearrange available resources in way
that it increase their value. Every business has few objectives related to profitability.
Businesses try to invest their available resource in best possible way in order to
increase the value of their invested resources through profitability. Entrepreneurs are
given the responsibility to develop and execute an idea to use the resources that can
generate profits and increase their value.
(2)An organization is in profit when its revenues earned from products supplied in the
market exceed the opportunity costs of resources spent to produce them. Consumers
only spend money on the products where they feel that product price is equal to
purchase price. Similarly Producer`s opportunity cost of supplying products will be
similar to the other products that can be produced with similar resources.
In case consumers are willing to pay price higher than products opportunity costs
means they value the product more than other products that can be produced by using

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Q:-What must an entrepreneur do to earn a profit? (2) How do the actions of firms earningprofits influence the value of resources? (3) What happens to the value of resources whenlosses are present? (4) If a firm making losses goes out of business, is this bad? Why or whynot?(1)Entrepreneurs are responsible for development of new products that can help anorganization to earn profits. New ideas related products posses significant risk offailures. Entrepreneurs take important decisions by figuring out which projects cangenerate profits Organizations invest their resources in new projects and products inhope of profits. The success of entrepreneur depends on customer`s acceptability ofnew product or idea (Gwartney D., Stroup L., Sobel S. & Macphresson A., 2011). In orderto earn profits entrepreneur should convert and rearrange available resources in waythat it increase their ...
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