How does the free-enterprise system discourage entrepreneurs who waste resources?

Question

Quizplus · Accepted Answer

In a free-enterprise system, entrepreneurs who waste resources are discouraged because they will not be able to make a profit and will be forced out of business. This is because resources, such as time, money, and materials, are limited and valuable, and wasting them will result in a higher cost of production and lower profit margins. As such, entrepreneurs who are inefficient and do not utilize resources efficiently will be unable to compete with more efficient and effective businesses, and will be forced to exit the market.

How Does the Free-Enterprise System Discourage Entrepreneurs Who Waste Resources