Market Mechanism, also known as the capitalist system, is an economic system where the means of production are owned by individuals or private companies rather than the state or government. In this system, prices of goods and services are determined by the forces of supply and demand in a free market. Here are the details of the market mechanism:

Private Property Rights
- In the capitalist system, individuals have the right to own property, including land, factories, and other means of production. This gives individuals the incentive to use their resources for production and to make a profit.

Free Market
- The market mechanism operates in a free market where businesses and consumers are free to make their own decisions regarding what goods and services to produce, buy, and sell. In a free market, competition between businesses leads to innovation, efficiency, and lower prices for consumers.

Supply and Demand
- In a market economy, prices are determined by the forces of supply and demand. When demand for a product increases, the price of the product increases, and when supply increases, the price decreases. This allows the market to adjust to changes in consumer preferences and changes in production costs.

Profit Motive
- In the capitalist system, businesses are motivated by the desire to make a profit. This drives businesses to be efficient, innovative, and responsive to consumer needs.

Limited Government Intervention
- In a market economy, the government's role is limited to protecting property rights, enforcing contracts, and providing public goods and services. The government does not interfere in the decisions of businesses and consumers in the market.

In conclusion, the market mechanism or capitalist system is an economic system where individuals and private companies own and control the means of production. Prices are determined by the forces of supply and demand in a free market, and businesses are motivated by the profit motive. The government's role is limited to protecting property rights and providing public goods and services.

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