The third answer is correct (C).
A market economy is characterized by the free entry and exit of competing firms and the free mobility of factors of production. This model aggregates a large number of companies and is governed by free competition and the Law of Supply and Demand.
The Law of Supply and Demand determines the price of products. If demand is high, price and output increase. If demand decreases, price decreases and quantity produced as well, because producers lose the incentive to produce.
In this way, the companies are not able to determine the prices, being determinant for its permanence the efficiency in the mode of production. Companies with high production costs succumb to competition and are eliminated from the market.
its C on edge
just took the unit test
A market economy
A closed company does not function anymore, a command economy has fixed sets, and a traditional economy is with the government.
they have to focus on certain groups