What is a pure market economy?

In the net market economy, manufacturers and consumers are to make their own economic decisions without these decisions are led or dictated by a central control mechanism. Ideally, this freedom allows buyers and sellers to make rational economic decisions and prices of products and services can be determined by supply and demand. The economy also requires competition, so companies can enter or leave industry in response to prices and profit potential, allowing more efficient businesses to survive and leaving the market for more efficient companies. This requires companies and consumers to have private ownership of their assets without participating in the market by a government or government -owned entities and also does not require government intervention in the form of subsidies or regulations that can affect consumers in the selection of the product. The government is no participation, because the government does not own any of the production factors. There is a clean labor market, without government regulation of wages or interference with the negotiations between workers andcompanies regarding the price of their work. Capital and land are all private ownership, so rent and interest rates are determined by the mechanism of supply and demand prices without government regulation.

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goods and services market consists of consumers who pay companies for their products, take rational economic decisions to buy the best products, and thus ensure that the most effective companies will achieve their products as much as possible. A net market economy requires a system of money that allows prices to be available by supply and demand and move up and down freely, avoiding the inefficiency of the exchange system. Censors' mechanism that production factors are used in the most effective way and that there is an effective allocation of resources in the economy. The market is competitive because there are a large number of buyers and sellers and no company is in a monopoly position from which it could set prices outside the normThe market mechanism. There is no chance of oligopol, in which several companies could overthrow to set prices between them to keep prices artificially high.