What is one of the most important determinants of the success of free-market capitalism

Question

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Free entry and exit in markets is crucial for the success of free-market capitalism as it promotes competition, innovation, and efficiency. It allows for firms to enter the market when they have new and innovative ideas and exit the market when they are no longer profitable, creating room for new firms to enter and compete. This process helps regulate prices, ensures that resources are efficiently allocated among industries, and ultimately leads to economic growth. Enlightened governments selecting firms that should not be allowed to exit a market or government regulation of market participants could lead to market distortions and hinder competition and efficiency. Having a few large firms rather than thousands of small ones could also lead to monopolistic behavior and hinder competition.

What Is One of the Most Important Determinants of the Success