One of the most important determinants of the success of free-market capitalism is:

Question

Quizplus · Accepted Answer

Free entry and exit in markets allow for competition and innovation, leading to better products and services at lower prices. It also allows for inefficient firms to be weeded out, leading to a more efficient allocation of resources. Government regulation can stifle competition and innovation, while preventing firms from exiting a market can lead to the wasteful allocation of resources. Having a few large firms can also lead to oligopoly power and reduced competition.

One of the Most Important Determinants of the Success of Free-Market