Which of the following principles of a free enterprise system best explains why the businessesin an industry cannot maintain an artificially high price?

Question

(1 point)
open opportunity
property rights
producer sovereignty
profit

Answer 1

The principle of "open opportunity" best explains why businesses in an industry cannot maintain an artificially high price. Open opportunity ensures that there are no barriers to entry for new competitors in the market. If existing businesses try to keep prices high, new competitors can enter the market and offer lower prices, which would drive prices down to a more competitive level. This principle supports the idea of competition and prevents any single business from maintaining artificially high prices for an extended period.