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Why are businesses that are able to make tremendous profits relatively rare in a free market economy?
Wiki User
∙ 13y ago
The idea of a free market economy is that once a business makes tremendous profits other businesses under cut (charge less for the same service) so they make a profit so other businesses make better products for the same price or the same product for an even lower price till there are only small profits to be made and the consumer has a good quality and cheap product. This is the theory behind free markets.
Wiki User
∙ 13y ago
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Which of the following describes a market economy?
(Apex Learning) Individuals own businesses, and they compete with one another for profits.
Contribution of real sector to an economy?
the business activity of financial intermediaries contributes to profits the economy bags as well as businesses in all other business related markets. these activities helps the economy to grow
Why protecting property rights is essential to a market economy?
Individuals and businesses need control over profits, use, and distribution of goods.
Why protecting property rights is essential to market economy?
Individuals and businesses need control over profits, use, and distribution of goods.
Explain why protecting property rights is essential to a market economy?
Individuals and businesses need control over profits, use, and distribution of goods.
Why business became popular and powerful?
Business has become popular as a means of making income, and of creating employment. In a relatively free market economy, businesses can make huge profits with limited government oversight.
Which of the following describes a market economy?
(Apex Learning) Individuals own businesses, and they compete with one another for profits.
Contribution of real sector to an economy?
the business activity of financial intermediaries contributes to profits the economy bags as well as businesses in all other business related markets. these activities helps the economy to grow
Why protecting property rights is essential to a market economy?
Individuals and businesses need control over profits, use, and distribution of goods.
Why protecting property rights is essential to market economy?
Individuals and businesses need control over profits, use, and distribution of goods.
a free enterprise system is a type of economy that: (apex)?
prevents governments from interfering with businesses (Apex)
What happens in a slow economy?
People become more cautious and don't spend there money. In result, not as much money is injected back into the economy. Businesses suffer and will not make there bumper profits.
Why is protecting property rights essential to market economy Explain?
Individuals and businesses need control over profits, use, and distribution of goods.
Explain why protecting property rights is essential to a market economy?
Individuals and businesses need control over profits, use, and distribution of goods.
How can the private sector respond to reduce poverty and create employment?
The private sector can aid the economy by generating profits. This will allow for them to invest in more research and in creating new businesses. Also, the taxes on their profits can be used to create anti-poverty programs.
In what ways did economy of the southern colonies depend on the practice of slavery?
The southern states used unpaid labor, slavery, for their businesses. With no labor costs, they were able to make hefty profits.
Why do businesses compete in a free enterprise?
to gain profits
