[marcosdumay]

It circled around every concept, gave a lot of references and refused to answer the question.

So, whatever the answer (yeah, you gave the answer), looks like it can wait a while. Politicians, on their turn must be wary. Here is what it said:

> In Chapter 11, we discussed how firms can maximize profits by producing the quantity such that P=MC, entering industries where P>AC, and exiting industries where P<AC. We also discussed how the movement of labor from weaker firms to stronger firms can increase efficiency. In Handbook of Labor Economics, it was found that in the United States, 60% of the increase in U.S. manufacturing efficiency was caused by people moving from weak firms to strong firms. In this chapter, we also discussed how firms can use limited resources, such as labor and capital, to produce goods in order to satisfy as many of our wants as possible. This means that firms must allocate labor and capital to their highest value uses in order to maximize profits.