Which of the following best help(s) entrepreneurs identify low-value industries versus high-value industries?
Which of the following best help(s) entrepreneurs identify low-value industries versus high-value industries?
marginal costs
price signals
total costs
central planner
To help entrepreneurs identify low-value industries versus high-value industries, the best option among the ones provided is price signals.
Price signals reflect the supply and demand dynamics in the market. High prices typically indicate high demand or low supply, suggesting a high-value industry, while low prices may indicate low demand or high supply, suggesting a low-value industry.
Marginal costs and total costs are important for understanding the cost structure of a business but do not directly indicate the value of the industry in the same way that price signals do.
A central planner is not typically involved in identifying industry values in a market economy, as this role is more aligned with centrally planned economies.
Therefore, the best choice is **price