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Hoochie [10]
3 years ago
15

Which of the following is an example of how entrepreneurship benefits citizens in a market economy?

History
1 answer:
Arisa [49]3 years ago
6 0

Answer:

A market economy is an economic system in which, according to theory, price formation, ie the determination of commodity prices, is regulated by free demand and supply. In addition, the production volumes of commodities are controlled according to demand. In a market economy, individuals set up businesses.

In a market economy, those who can work together are more successful. Entrepreneurs merge into companies, capital owners form investment funds and employees merge into trade unions to protect their interests. Small businesses and consumers form cooperatives against large, market-dominant multinationals in order to reduce the purchase price of products and increase their market power by using economies of scale.

A market economy is based on private ownership and private interest, but its sustainability (market freedoms) is ensured by a public institution that establishes a single legal order on its territory and resolves conflicts through the courts.

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