Microeconomics: Principles, Problems, & Policies, 20th Edition

by McConnell, Campbell; Brue, Stanley; Flynn, Sean

Published by McGraw-Hill Education

ISBN 10: 0077660811

ISBN 13: 978-0-07766-081-9

Chapter 2 - The Market System and the Circular Flow - Discussion Questions - Page 49: 12

Answer

The answer is below.

Work Step by Step

This is a key concept in business: in order to make profit, businesses need to take risks. Thus, the leaders of businesses are expected to decide what is a reasonable risk for their business to take.

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