What is one impact of technological advancements on free enterprise?

• A. They reduce competition among businesses
• B. They can lead to competitive advantages for businesses
• C. They solely increase unemployment rates
• D. They have no impact on productivity

Answer: (B)

Technological advancements significantly influence free enterprise by providing businesses with tools and innovations that can enhance efficiency and productivity. When a business adopts new technologies, it might improve its production methods, reduce costs, or enhance the quality of its products or services. This creates a competitive advantage in the marketplace, allowing the business to offer better prices, faster service, or superior offerings compared to its rivals.

As businesses leverage technology to meet customer demands more effectively and innovate in their operations, they can capture a larger market share and potentially drive other companies to either adapt or struggle to keep pace. Ultimately, this dynamic fosters a thriving competitive environment that is fundamental to the principles of free enterprise.