Free Enterprise

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FREE ENTERPRISE


Free enterprise refers to an economy that allows private businesses the freedom to organize and operate competitively for a profit without government interference, regulation, or subsidy. The main characteristics of a free enterprise economy are market competition, generation of profit, and the law of supply and demand. Competition forces businesses to manufacture goods with available raw materials and means of production at the lowest cost possible. In order to generate a profit, businesses must then be able to sell their products at a price higher than the cost of production. Pricing of goods in a free enterprise economy is based on both the supply of goods available in the marketplace and the demand for those goods from consumers. If the supply is greater than the demand, the resulting surplus causes prices to decrease. If the demand is greater than the supply, the resulting shortage causes prices to increase. Eventually, an equilibrium price is reached when supply meets demand.

See also: Capitalism, Supply and Demand

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Free Enterprise ★★½ 1998 (R)

Funny and inventive semi-autobiographical tale of a couple of aspiring filmmakers facing 30 without a clue about becoming adults. Schlock screenwriter Robert (Weigel) and best bud, film editor Mark (McCormack), filter their existence through sci fi and ‘70s TV shows. The two are completely geeked by a chance meeting with their “Star Trek” idol William Shatner (who slyly pokes fun at his own persona), who offers them enouragement. The duo actually make some attempts at that grown-up thing by the clever finale. 114m/C VHS, DVD . Eric McCormack, Rafer Weigel, William Shatner, Audie England, Patrick Van Horn, Jonathan Slavin, Phil LaMarr, Deborah Van Valkenburgh; D: Robert Meyer Burnett; W: Robert Meyer Burnett, Mark Altman; C: Charles L. Barbee; M: Scott Spock.

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free en·ter·prise • n. an economic system in which private business operates in competition and largely free of state control.