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Which scenario best represents free enterprise ideals in action?

A.The state government mandates that all public schools must buy books and supplies from one provider.
B.The maker of a child-safety device produces the device at the lowest possible cost and charges the highest possible price.
C.The federal government collects income tax money and uses it to maintain a military force.
D.The only dog groomer in a small town makes a profit even though her prices are high and her work is poor quality.

User Luchostein
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1 Answer

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B is the best option of free enterprise. Free enterprise means the government is not involved in the affairs of the economy and competition is allowed to occur. Option D doesn't present any competition and therefore without competition free enterprise doesn't exist there. In option B the company is using resources to gain the best cost and profit margin.
User John Larson
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