In a market economy, this is the driving force that encourages individuals and organizations to improve their material well-being. hint: PR

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Alexandra Li

Business

19 April, 05:52

In a market economy, this is the driving force that encourages individuals and organizations to improve their material well-being. hint: PR

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Answers (1)

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Blair · Answer 1

Profit motive

Explanation:

In a market economy system, transaction decisions are influenced by the forces of demand and supply. In this system, demand, supply, and commodity prices guide firms and individuals in determining the allocation of resources. In a market economy, private firms and individuals own and control the majority of the factors of production.

Industries and businesses are owned by the private sector in a market economy. Since demand and supply influence the allocation of resources, entrepreneurs establish businesses based on projected profitability. In other words, the profit motive is the main drive for starting a business.