Higher profits
A) promote even allocation of resources.
B) encourage large-scale advertising.
C) increase social responsibility.
D) protect competitors from each other.
E) attract competition.

Question

Quizplus · Accepted Answer

Higher profits in a market or industry signal to other companies that there are opportunities for success, which attracts new competitors seeking to capitalize on those opportunities. This is a fundamental concept in market economies where profit signals help allocate resources efficiently by drawing new entrants to profitable sectors.

Higher Profits