Number 1

In a free enterprise system Profit motive targets the amount of profit that is to be earned and measures the success of that business. Competition is good for consumers because it provides choices, forces companies to improve quality, it becomes more efficient and leads to a surplus that brings prices down. Profit motive and competition encourages the production of quality products that meets the needs of consumers and can bring prices down; therefore, the impact that profit and competition has on the free enterprise system is that consumers are able to choose which products they buy and where they purchase them from and at a better rate.