The freedom of private business to operate for profit competitively is called the ___system.

The freedom of private business to operate for profit competitively is called the free enterprise system.

Explanation:

For a capitalist economy to grow, it is primarily necessary that there is healthy competition in the market. The free enterprise system dispenses equal opportunity for every single entity in the market to frame their own strategies.

And, also work on them in order to stand the competition and fetch profits. Private businesses take advantage of this system by customising their products and services on fronts like manufacturing, marketing, sales, after-sales service, etc.

In order to avoid falling back in the competition posed by market competitors, private businesses try and build their own unique selling propositions (USP's) and products that distinguish them from other producers in the market. This avails healthy market competition and the free enterprise systems are nurtured through the process.