Answer to Question #325872 in Microeconomics for Mehak Jolly

Question

Private profit maximising firms, operating within competitive markets, form the backbone of the dynamic capitalism which is capable of generating sustained and everlasting growth in standards of living in societies.”

Answer 1

A nation's firms gain competitiveness if they possess low-cost. A nation's competitiveness depends on the capacity of its industry to innovate and upgrade. So, private profit maximising firms are capable of generating sustained and everlasting growth in standards of living in societies.