How do companies compete in a capitalistic economy? What will be an i

QUESTION

How do companies compete in a capitalistic economy?

What will be an ideal response?

ANSWER

In a capitalistic economy, the means to produce goods and services are owned by private interests. People choose what they buy and what they sell; therefore, the free market determines what types of goods and services are produced and what prices are charged. The result is competition for customers and their dollars.