Understanding Business, 10th Edition

Published by McGraw-Hill Education
ISBN 10: 007352459X
ISBN 13: 978-0-07352-459-7

Chapter 2 - Understanding Economics and How It Affects Business - Critical Thinking - Page 55: 1

Answer

Economic principles like competition do apply in both public and private markets.

Work Step by Step

In private markets there is inherent competition between firms to capture the market share. There is also competition between private and public markets such as using taxis versus public transportation and private versus public schools. This competition is good because it pressures the government to continue growing and modernizing its services.
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