Final answer:
Businesses can fail due to reasons like poor management, unproductive workers, tough competition, shifts in market demand and supply, and changing prices for inputs and outputs. Despite the negative impacts, business failures can be necessary for a market-oriented system to satisfy customers, lower costs, and foster innovation.
Step-by-step explanation:
In a market economy, businesses can fail for various reasons such as poor management, unproductive workers, tough competition, shifts in market demand and supply, and changing prices for inputs and outputs. Even though business failures can have negative impacts on individuals directly involved, they are sometimes necessary in a market-oriented system to satisfy customers, lower costs, and foster innovation.