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Which factor plays the largest role in economic decisions in a market economy?

User Khilo
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2 Answers

3 votes

Answer:

Competition between different businesses

Step-by-step explanation:

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User Djabraham
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3 votes

Answer:

Business strategies play the largest role in economic decisions in a market economy.

Step-by-step explanation:

A market economy is an economic system in which most goods are made by producers for consumption by others and distributed through a system of trade. In a market economy where unadulterated competition prevails, the price of a product is determined by supply and demand.

This form of economy can arise from strong specialization and division of labor, which generate such a surplus that distribution of this surplus becomes necessary. In contrast to a subsistence economy, people are only very self-sufficient here.

User Roozbubu
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