Service providers like cable companies have tiered pricing and also charge their customers according to a schedule of fees. Sometimes customers are able to negotiate for a lower price by getting fees or service charges waived for a certain amount of time if they contact customer service and threaten to cancel their service. The flexibility on the part of service providers is an attempt to practice:

Brian has just finished college. he wants to set up a small business to make and sell fireworks. he registers his company and acquires a license from the government. he finds that most of his competitors are selling fireworks at an extremely low price. he would like to make more money, so he decides to innovate and develop better fireworks. he sells his fireworks at a higher price, and they are a huge hit with the customers. after a few years, he earns enough profit to set up a bigger fireworks factory that complies with the government’s health and safety regulations. he even starts exporting fireworks overseas. which type of economy does this scenario describe?