Why is decentralization of power an important part of capitalism and a free-market economy?

A. It strengthens companies by helping them form alliances.
B. It keeps any one company from becoming a monopoly.
C. It makes it illegal for companies to gain too much power.
D. It prevents workers from asking companies for raises.



Answer :

Final answer:

Decentralization in capitalism and free markets prevents monopolies, fosters competition, and protects workers from low wages.


Explanation:

Decentralization of power is an important aspect of capitalism and a free-market economy because it helps prevent any one company from becoming a monopoly, which can lead to a concentration of market power and hinder competition. In a decentralized system, companies are constantly tested to satisfy consumers, innovate, and improve, ultimately benefiting both consumers and the economy as a whole.

Moreover, decentralization provides procedural fairness to employees and empowers them, leading to faster decision-making and attracting job candidates. It also protects workers from low wages by encouraging competition among employers to offer better wages to attract and retain employees.


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