Question

Which of the following principals of a free enterprise system best explains why the businesses in an industry cannot maintain an artificially high price?(1 point)
Responses

producer sovereignty
producer sovereignty

property rights
property rights

open opportunity
open opportunity

profit
profit

Answer 1

The principle that best explains why businesses in an industry cannot maintain an artificially high price is **open opportunity**. In a free enterprise system, open opportunity allows new competitors to enter the market when they see the potential for profit, leading to increased competition which ultimately drives prices down to a more sustainable level.