The reason why the profit motive is important in a market economy is that it C. encourages people to open businesses and invent new products.
<h3>Why is there a profit motive in a market economy?</h3>
The profit motive ensures that there is an incentive to make new product and open more businesses to service the needs of the society.
When people know that they will be able to make profit from new enterprise, they are more likely to think up ways to engage in business to make profit.
