In a successful economy, firms should be:
A) only making profits.
B) only breaking even.
C) only going bankrupt.
D) either making profits, breaking even, or going bankrupt.

Question

Quizplus · Accepted Answer

In a successful economy, firms should have the freedom to either make profits, break even, or even fail and go bankrupt. This promotes competition and innovation, as firms strive to create better products and services for their customers. The market should decide which companies succeed and which do not, rather than government intervention or protectionism. However, there should be some basic regulations in place to ensure fair competition and prevent monopolies.

In a Successful Economy, Firms Should Be