What is the fundamental purpose of the free enterprise system?

Answer 1

The fundamental purposes of Capitalism are: Private ownership of property, competition, individual initiative, Supply & Demand, and profit. Capitalism is primarily for the consumer. For example competition. If two companies offer the same product, or service, they will compete with each other. Usually by lowering their prices. This benefits the consumer of the good or service by getting it for cheap. Another example is Supply & Demand. If the consumers want (demand) a certain product, the producers will create (supply) that product, and usually will compete with other producers. The idea is to make money, basically. Hence the last purpose, profit.