BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -This “invisible hand” of self-interest is the driving force of a market economy. Competition is another important characteristic of a market economy. Instead of government regulation, competition limits abuse of economic power by one business or individual against another.

Detailed explanation-2: -Free enterprise works because it allows people to do what they do best and trade for the rest. Competition is a driving force of free enterprise, resulting in greater efficiency and lower prices for the consumer.

Detailed explanation-3: -It creates jobs and provides people with a choice of employers and work places. Competition also reduces the need for governmental interference through regulation of business. A free market that is competitive benefits consumers-and, society and preserves personal freedoms.

Detailed explanation-4: -In a purely free market, buyers and sellers arrive at prices based only on supply and demand. As such, buyers and sellers compete with one another and among each other to pay the lowest price (for buyers) or receive the highest price (for sellers).

Detailed explanation-5: -A market economy promotes free competition among market participants. Notable benefits of a market economy are increased efficiency, production, and innovation.