Question

What are two advantages that a market economy has over a mixed economy??

Answer 1

1.) A market economy was buyers were free to purchase any commodity which they like in any amounts.

2.)A seller of a good producer can also produce whatever product they wanted to.

Answer 2

Answer:

°Freedom of choose

° Price Flexibility

Explanation:

The market economy, also called "Capitalism" offers as advantages over the mixed economy, the possibility both for the bidder and for the one who buys to choose, between various producers and consumers. In other words, there is free interaction between producers and consumers.

Price flexibility occurs because in this type of market economy the producer and consumer, both are aware of the cost of the product or service, which allows various offers to be generated, depending on demand, always seeking to maximize profits for the producer and for the consumer to satisfy their consumption needs. It should be noted that the variation in prices depends on the demand for the products and services, as well as on the actions taken in the market by all the companies or individuals that offer them.

As for the mixed economy, it is important to say that the participation of the state for pricing and as a regulator of services generates a mismatch in the economy. Serious cases such as Cuba and Venezuela are seen, in which the states have taken the MIXED economy system to the extreme, assuming all of the service companies and the majority of products.