Why Is the Right of Private Property an Essential Characteristic

question 42

Essay

Why is the right of private property an essential characteristic of a market system?

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Definitions:

Margin of Safety

The difference between actual sales and the break-even point, indicating how much sales can drop before a company incurs a loss.

Break-even Sales

The instance at which all costs are balanced by all revenues, resulting in neither gain nor loss.

Break-even Point

The level of production or sales at which total revenues equal total expenses, resulting in no profit or loss.

Fixed Expenses

Costs that are static in total over a particular period, not varying with production volume or sales, such as salaries and rent.