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- Private property? What is that? I just moved in next door and wanted to check out the land next to me. Why can't I be here?
- Excuse me? What are you doing here? This is my private property.
- Private property means you can own, use, or dispose of things of value. Since I pay to live here, this is my house. I own it. I have a say in who comes, what it looks like etc. It was my freedom of choice to choose it.
- Oh okay. So I can't come on your private property without permission because you own it and vice versa, but what is freedom of choice?
- Well you see, freedom of choice means that you can make economic decisions independently and accept the consequences of those decisions.
- Could you give me an example?
- Yes! So for example, I choose to own my business. I choose where to locate it and what to sell. I am not forced to. Its my choice. That all affects my profit.
- What is profit?
- Profit is the money left from sales after all of the costs of operating a business have been paid. That is the advantage of my business, but there are consequences such as competition.
- Okay so profit is the money you make off your business, got it. Could you tell me a little more on competition?
- Competition is the rivalry among businesses to sell their goods and services. They compete for your customers. It was nice talking to you, but I have to go, see you soon!
- Thank you for teaching me so much! I would love to learn more. Next time I wont come on your private property without asking. Bye!
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