Home » In a pure capitalist system where free markets exist, freedom of enterprise and freedom of choice exist.

In a pure capitalist system where free markets exist, freedom of enterprise and freedom of choice exist.

In a pure capitalist system where free markets exist, freedom of enterprise and freedom of choice exist. However, if one chooses to produce that which consumers do not want or at least don’t want enough to cover the cost of the scare resources employed, the producer-entrepreneur will find this freedom of enterprise limited by the decisions of consumers in the market place. On the demand side, consumer choice is limited by the prices of products that the consumer wants and the consumer’s income, which is limited by the value that the consumer’s own resources can earn in the resource market.

How does this concept relate to the invisible hand?

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