The same for all businesses. Reliable and accurate. Profits received by resource owners can be reinvested in business research and development. Some economists argue that this system creates unnecessary product duplication and wastes resources. The system is quick to respond to social and environmental problems.
Businesses go bankrupt, and people loose jobs.
With 1 employee, because marginal revenue is greatest. With 4 employees, because marginal cost is least. With 2 employees, because marginal cost equals marginal revenue. With 3 employees, because marginal cost equals marginal revenue. Implicit in the assumption regarding demand is the law of increasing marginal utility, that as you consume more, you derive increasing utility.