17 How was industrial … B. Characteristics of Competitive Markets. Pure Competition No, … Capitalism developed historically out of previous systems of feudalism and … Capitalism depends on the enforcement of private property rights, which provide incentives for investment in and productive use of productive capital. capitalism Every one has the freedom to form any firm anywhere he likes, provided he has the requisite capital and ability. In this system, markets and prices are used for the coordination and direction of economic activity. Capitalism is an economic system characterized by private ownership of the means of production, especially in the industrial sector. does pure capitalism exist in america. - Answers Capitalism is an economic system characterized by private ownership of the means of production, especially in the industrial sector. The production of goods and services is based on supply and demand in the general market — known as a market economy — rather than through central planning — known as a planned economy or command economy. Capitalism Capitalism is an economic system characterized by private ownership of the means of production, especially in the industrial sector. Competition. In a market system, the answer to the "for whom to produce" economic question is that: goods are allocated to those with the willingness and ability to pay, as expressed through market demand. What is a capitalist economy