Question

Which of the following principles of a free enterprise system best explains why the businesses in an industry cannot maintain an artificially high price?(1 point) Responses property rights property rights producer sovereignty producer sovereignty profit profit open opportunity

Answer 1

The principle that best explains why businesses in an industry cannot maintain an artificially high price is **open opportunity**. This principle suggests that in a free enterprise system, businesses can enter the market freely to compete, which will typically drive prices down to their market equilibrium level. If one business tries to set prices artificially high, others can enter the market and offer lower prices, ultimately making it difficult for any single business to maintain a high price.