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In a free market, firms play a crucial role by producing goods and services that meet consumer demands. They compete with one another to innovate and improve efficiency, which can lead to better quality products and lower prices. Additionally, firms contribute to economic growth by creating jobs and generating wealth, while responding to market signals to allocate resources effectively. Overall, they are key drivers of economic activity and consumer choice in a free market system.
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In a free market economy firms purchase from households?
In a free market economy, firms purchase factors of production such as labor, from households.
What is the outline of the benefits of free market economies to owners of firms?
what does the free market economies benefits to owners
Firms in an industry will not earn long-run economic profits if?
In long run under perfect competition new firms enters into the market and share the profit of existing firms due to free entry and exit .the new firms in the long run enters into the market until they earn profit and leaves the market if they suffer looses. In short if there is free entry and exit
Which two key groups make up a free market economy?
household and firms
What role does self-interest playin a free market economy?
It is the motivating force in the free market
In a free market economy firms purchase from households?
In a free market economy, firms purchase factors of production such as labor, from households.
What is the outline of the benefits of free market economies to owners of firms?
what does the free market economies benefits to owners
Firms in an industry will not earn long-run economic profits if?
In long run under perfect competition new firms enters into the market and share the profit of existing firms due to free entry and exit .the new firms in the long run enters into the market until they earn profit and leaves the market if they suffer looses. In short if there is free entry and exit
Which two key groups make up a free market economy?
household and firms
What role does self-interest playin a free market economy?
It is the motivating force in the free market
What is the role of households in a free market economy?
households are important role in free market economy. they only called as customers and consumers in the free market economy so they involved goods purchase and selling activities..
Role of profit in a free market economy?
the role is...ehhh i dont know. sorry :(
The circular flow of economic activity describes an economy that is free of markets?
The market is the mechanism that brings together households and firms.
What are the rules of households and firms in a market economy?
In a market economy, firms make the goods. Households buy the goods.
What are the roles of households and firms in the market economy?
in a market economy, firms make the goods. Households buy the goods
What are the roles of household and firms a market economy?
in a market economy, firms make the goods. Households buy the goods
What are the characteristics of a market structure that exhibits perfect competition in the long run?
In a market structure with perfect competition in the long run, there are many buyers and sellers, products are identical, there is free entry and exit of firms, perfect information, and firms earn normal profits.
