Final answer:
Fair competition is a fundamental component of the private enterprise system, as it ensures a balance that benefits society and maintains market effectiveness, contrary to the idea presented in the statement which is false.
Step-by-step explanation:
False, fair competition is indeed a basic right required under the private enterprise system. In a capitalist economy like that of the United States, private citizens own the factors of production and operate under a free enterprise system. The U.S. government plays a role in this system by enforcing regulations and competition laws that help maintain a level playing field for businesses, thereby ensuring that competition remains fair and equitable. Factors that contribute to an effective market include adequate competition, well-informed consumers and producers, mobility of resources, and prices reflecting the cost of production. Market failures can occur when these conditions are not met, leading to a less competitive environment which can affect both freedom and equity in the economic system.