What describes a scenario where all factors of production are privately owned and operated for profit?

The scenario where all factors of production are privately owned and operated for profit is best described as capitalism. In a capitalist economy, individuals and businesses have the freedom to own property, operate enterprises, and make profits based on their economic activities. This system is characterized by competitive markets where supply and demand determine the prices of goods and services. The primary goal within capitalism is profit maximization, fostering innovation and efficiency as businesses strive to outperform their competitors.

Socialism and communism, on the other hand, involve varying degrees of government ownership and control over production. In socialism, the means of production may be owned or regulated by the state on behalf of the public, focusing on collective welfare rather than individual profit. Communism advocates for the abolition of private ownership altogether, leading to a classless society where resources are shared equally among all individuals. A mixed economy combines elements of both capitalism and socialism, allowing for some private enterprise alongside significant government intervention and regulation. None of these alternatives fit the description of an economic system solely driven by private ownership and profit motive as clearly as capitalism does.