met. Of primary importance is the existence of some form of ownership of property which can be controlled by individual or collective action. The right of an enterprise to exist, and for individuals to own and operate an enterprise free from excessive interference from political and religious authority is necessary and was available in the Middle Ages (22). Enterprises must have the ability to acquire goods and resell them at a profit or loss with the risk of loss being held by the enterprise (22). And last, enterprises must be allowed to alter their activities by changing, adding, or deleting each activity on the basis of profitability (22).
They repeated refer to the growth of markets as a driving force behind the increasing specialization of labor. As labor becomes more specialized, a surplus of goods develops which allows for an expansion of trade. Increases in trade promote the growth of markets. Markets set prices and allocate resources according to the value placed on the goods by the buyers. Unrestricted markets accomplish the distribution of resources in an efficient manner. This is standard doctrine for capitalistic theory. In the capitalist system, which the authors claim was beginning its development during the Middle Ages, markets were also responsible for setting the reward structure for enterprises which took risks to bring innovation to the markets (26). The reward structure which developed tended to reward the individuals and enterprises which marketed their products to the masse
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