Page "Economic calculation problem" Paragraph 13

According to Kirzner ( 1973 ) and Lavoie ( 1985 ) entrepreneurs reap profits by supplying unfulfilled needs in markets.

Entrepreneurship therefore brings prices closer to marginal costs.

The adjustment of prices in markets towards ‘ equilibrium ’ ( where supply and demand equal ) gives them greater utilitarian significance.

The activities of entrepreneurs make prices more accurate in terms of how they represent the marginal utility of consumers.

Prices act as guides to the planning of production.

Those who plan production use prices to decide which lines of production should be expanded or curtailed.