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Does Free Enterprise Lead to Efficient Production?

Proponents of free market systems argue that free enterprise leads to more efficient production and better response to changing consumer preferences. Others point to the fact that markets are not perfect.

Consider both viewpoints and respond to both sides of the issue with your viewpoints.

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Economic Systems

Proponents of free market systems argue that free enterprise leads to more efficient production and better response to changing consumer preferences. Others point to the fact that markets are not perfect.

Consider both viewpoints and respond to both sides of the issue with your viewpoints.
In favor of the free market system is the fact that consumers are free to buy any product they want to buy and in the amount they wish to. Further, there is an interaction of demand and supply and so a unique price is determined. For instance, if the price of a commodity is high then market forces interact and ensure equilibrium. Further, the proponents of the free market system contend that the system brings transparency to the ...

Solution Summary

Factors that lead to efficient production are discussed in great detail in this solution of 427 words with 8 references.

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