Question

Why is marketing essential to a free market economy?

A. Because it allows companies to compete against each other. B. Because it is mandated by law in order to sell goods and services. C. Because it uses advertising and promotions to educate the consumer about products.
D. Because historically all businesses have practiced it.

Answer 1

A. Because it allows companies to compete against each other.

Answer 2

The correct option is C.
A free market economy is the a type of market in which the price of goods and services are determined by the laws and the forces of supply and demand. Marketing is essential in a free market economy because it gives the producers the opportunity to create awareness for their products and to promote them.