When companies try to keep their costs down, they are primarily following which principle of the US economic system of free enterprise? A. consumer sovereignty B. the right to private property C. profit motive D. the right to choose one's business

Question

Social Studies

Gunnar Crosby

28 March, 05:40

When companies try to keep their costs down, they are primarily following which principle of the US economic system of free enterprise? A. consumer sovereignty B. the right to private property C. profit motive D. the right to choose one's business

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Answers (2)

Know the Answer?

Annabella Bartlett · Answer 1

Annabella Bartlett 28 March, 06:18

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B - the right to private property

Jamarcus Chapman · Answer 2

Explanation:Free enterprise is when producer can freely determined what to produce how to produce, and in what quantity to produce. As well as the efficiency of the available resources.

In a free enterprise profit is the primary objective of the business. Therefore when a company try to cut their cost they are trying to ensure that their overhead expenses is not more than their income. Total revenue minus total cost is equal to profit (TR - TC = profit)