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)

Question

Responses

producer sovereignty
producer sovereignty

property rights
property rights

open opportunity
open opportunity

profit

Answer 1

The principle that best explains why businesses in an industry cannot maintain an artificially high price is "open opportunity."

Open opportunity allows new businesses to enter the market when they see the chance to make a profit, which increases competition. If a group of businesses tries to maintain high prices, new entries into the market will likely undercut those prices to attract customers, driving prices down to a more competitive level.