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...ies usually offer the same product or service. Competition among multiple sellers helps to hold down prices and keep quality high, since customers are likely to buy from the company with the best product and lowest price. According to laws of supply and demand when supplies become more plentiful, prices tend to drop. Being that a firm is the only source of a product or service, it’s known as a monopoly.However, this system is also known as a free enterprise system. In a free enterprise system there are five noteworthy characteristics: private ownership, guarantees for property rights, decentralized decision making, competition, and freedom of choice. In a free enterprise most of the means of production are privately rather than publicly owned. A free enterprise system can work only when property rights are guaranteed. Therefore, no person may “be deprived of life, liberty, or property without due process of law.” Under capitalism, basic decisions about what to produce and how to produce it are left to private decision-makers. A person who takes the initiative and risk of starting or expanding a business is called an entrepreneur. Due to several people being free to enter a new business at any time, a number of companies usually offer the same product or service. Competition among multiple sellers helps to hold down prices ince customers are likely to buy from the company with the best product and lowest price. According to laws of supply and demand when supplies become more plentiful, prices tend to drop. Being that a firm is the only source of a product or service, it’s known as a monopoly.However, this system is also known as a free...