1. Summarize characteristics of a free enterprise system

2. Free enterprise is… Private enterprise Supply and Demand Entrepreneurs

3. The principles of a free enterprise system are…(con’t) Freedom of ownership Competition 1.Direct competition For example: McDonald’s vs. Burger King

4. The principles of a free enterprise system are…(con’t) 2. Indirect competition For example: McDonald’s vs. Applebee’s 3. Price competition For example: Wal-Mart 4. Non-price competition For example: Nordstorm

5. The principles of a free enterprise system are …(con’t) 5. Monopolies – sole control over a product and the means of producing it. Risk – potential for loss or failure Profit – All money left over from sales after expenses have been paid & the incentive for entrepreneurship

6. How does competition affect buyers & sellers? BuyersSellers