1.11 Market Economic System

market economic system also known as

free market economy

market economic system

an economic system in which private producers make decisions on how to manage the economy

all resources are owned by

private producers

is there government control

no

what is the maintenance

profit

how do you know what to produce

combination of cheapest resources

advantages

higher efficiency and productivity, higher competition, more variety

disadvantages

unequal income, if only one producer, a monopoly can occur, increase of unemployment

monopoly

a commodity or service in the exclusive control of a company or group