Final answer:
The economic basis for the private enterprise economic system is driven by the motive of profit and competition in the marketplace. The system relies on a manufacturer supply chain to produce and distribute goods.
Step-by-step explanation:
The economic basis for the private enterprise economic system lies in the motive of profit. In this system, businesses are driven by the goal of making profit and maximizing their economic gains. The competition among businesses in the marketplace is a key component of the private enterprise system, as it encourages innovation, efficiency, and better quality products or services.
For example, when multiple companies offer the same product or service, they compete with each other to attract customers by offering better prices, higher quality, or unique features. This competition benefits consumers by providing them with more choices and often results in lower prices and improved products or services.
Furthermore, the private enterprise system is supported by a manufacturer supply chain, which encompasses the production, distribution, and sale of goods. Manufacturers produce goods, which are then sold to distributors, who in turn sell them to retailers, and finally, the retailers make these goods available to consumers.
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