Posted by Ami on Monday, September 7, 2009 at 3:52pm.
The fundamental role of free enterprise is to allow markets to allocate scarce resources in an optimally efficient manor. Under free enterprize a) the factors of production are privately owned, b) producers get to keep or sell the fruits of their labor, c) producers sell their goods or services to the highest bidder, producers are profit maximizers d) consumers who are willing to pay the most get the goods or services, e) consumers choose goods and services to maximize their owne utility, f) governments or institutions do not interfere with such exchanges of goods and services for money; the primary role of the government is to enforce contracts, g) and equity or fairness is not a concern of free enterprise.
How's that?
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