In a Free Market, If the Profit Rate in the Car

Multiple Choice

In a free market, if the profit rate in the car industry were higher than in the computer industry, this is a signal that:

A) consumers should spend more on computers and less on cars.
B) consumers should spend more on cars and less on computers.
C) entrepreneurs should move resources from the computer industry to the car industry.
D) entrepreneurs should move resources from the car industry to the computer industry.