Question

Producers in the market economy are competing for customers, so they often have _________________________ than other types of economies.

more governmental regulation

less property ownership

less variety of product

lower prices

Answer 1

lower prices

Step-by-step explanation:

A market economy is an economy where production decisions are made by the forces of demand and supply. there is no intervention of the government in production decisions

Characteristics of a pure market economy

• Private ownership of means of production

• freedom of choice. Producers are free to produce what they desire

• competition among producers

• no government intervention.

Due to the fact that producers compete with each other in this type of economy, prices would be lower to attract customers