Question

In a free-market economy, companies generally have limited autonomy in deciding which customers they want to focus on and how they want to compete. True or False?

A) True
B) False

Answer 1

False. In a market-oriented economy, companies have more autonomy in deciding which customers to focus on and how to compete.

Step-by-step explanation:

In a free-market economy, companies generally have limited autonomy in deciding which customers they want to focus on and how they want to compete. False.

In a market-oriented economy, firms have the freedom to make their own choices. Private firms generally have the freedom to expand or reduce production, set the price they choose, open new factories or sales facilities or close them, hire workers or lay them off, start selling new products or stop selling existing ones, and more.

While there may be some regulations and limitations imposed by the government, overall, companies in a market-oriented economy have more autonomy and decision-making power than in other economic systems.