Homework Help: Microeconomics

Posted by Jarmisha on Thursday, June 29, 2006 at 5:09pm.

Explain in detail why profit-seeking businesses have incentive to use resources efficiently. How does your explanation fit into the idea of "the invisible hand of the market?"

If one has competition, then you have to reduce costs (or go out of business). The goal it to increase profit (revenue minus costs).

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