0
What else can I help you with?
Why does the government need to regulate the free market to protect competition?
Producers driven by the profit motive seek to reduce their competition.
What is the economic system in which private business operates competetively for profit with minimal government regulation?
"Free market" economy
Explain the process that drives the economic profit to zero in the long run for a perfectly competitive firm?
In perfectly competitive markets, economic profits are zero in the long run because firms are able to enter and exit the market. If firms in a perfectly competitive market are profitable, there would be an incentive for new firms to enter. Supply would increase, causing an increase in quantity and the price to be driven back down to equilibrium: NO PROFIT! If firms in a perfectly competitive market are suffering a loss, some firms would choose to exit the market. Supply would decrease, causing a decrease in quantity and the price to be driven back up to equilibrium: NO PROFIT!
What is the economic system in which private business operate competitively for profit with minimal government regulation?
An economic system in which businesses operate with little interference from the government is known as a free market economy. The United States is a good example of this type of economy.
What is speculative investment?
Speculative investments are driven by pure speculation and doesn't involve you to own the stocks or currencies that you are trading. Speculation is driven by various factors such as economic data.
Why does the free market system required government regulations?
Producers are driven by the profit motive to work against competition.
Why does the government need to regulate the free market to protect competition?
Producers driven by the profit motive seek to reduce their competition.
What is the economic system in which private business operates competetively for profit with minimal government regulation?
"Free market" economy
What is the economic system in which private business operate competitively for profit with minimal government regulation?
An economic system in which businesses operate with little interference from the government is known as a free market economy. The United States is a good example of this type of economy.
Why does free - market system require government regulation?
Producers are driven by the profit motive to work against competition
Explain the process that drives the economic profit to zero in the long run for a perfectly competitive firm?
In perfectly competitive markets, economic profits are zero in the long run because firms are able to enter and exit the market. If firms in a perfectly competitive market are profitable, there would be an incentive for new firms to enter. Supply would increase, causing an increase in quantity and the price to be driven back down to equilibrium: NO PROFIT! If firms in a perfectly competitive market are suffering a loss, some firms would choose to exit the market. Supply would decrease, causing a decrease in quantity and the price to be driven back up to equilibrium: NO PROFIT!
What economy has economic freedom competition between businesses and decisions motivated by profit?
Market
What is speculative investment?
Speculative investments are driven by pure speculation and doesn't involve you to own the stocks or currencies that you are trading. Speculation is driven by various factors such as economic data.
What economic system is based on private ownership and competition motivated by profit?
market economy
What are the key features of a capitalist economic system?
A capitalist economic system is characterized by private ownership of businesses and resources, free market competition, profit motive, and minimal government intervention in the economy. This system allows individuals and businesses to make their own economic decisions and encourages innovation and entrepreneurship.
What is the significance of the zero profit condition in economic theory?
The zero profit condition in economic theory is significant because it helps determine the equilibrium price and quantity in a competitive market. When firms earn zero profit, it indicates that resources are being allocated efficiently and that the market is in equilibrium. This condition also ensures that resources are being used in the most productive way, leading to overall economic efficiency.
What are the characteristics of the ideal capitalist model and the ideal socialist model of economic systems?
The ideal capitalist model is characterized by private ownership of resources, minimal government intervention, competition, and a profit-driven market where supply and demand dictate prices. In contrast, the ideal socialist model emphasizes collective or state ownership of resources, equitable distribution of wealth, and government planning to meet social needs, often prioritizing social welfare over profit. Both models aim for efficiency and prosperity but differ fundamentally in their approaches to ownership, resource allocation, and the role of the government.
