In a competitive industry, the presence or absence of profits sends an important signal about the industry's economic efficiency. The answer is, in markets. Over time, markets have become increasingly complex. Now, buying and selling can occur over a fax machine, from an airplane telephone or via international computer networks. A market is any place or any way that buyers and sellers can exchange goods, services, resources or money.
Households go through resource markets to sell their labor to businesses.
Businesses go through product markets to sell goods and services to households. And both households and businesses use financial markets to borrow and save money. Typically, businesses borrow money that households save, using financial institutions as the intermediary. The cornerstone of a truly free enterprise economy is the absence of government interference in economic matters. However, the government still plays an important role in any free enterprise system.