Capitalism is an economic and social system where private individuals or corporations, rather than the state, own and control the means of production for profit. It operates on the principles of supply and demand, competition, and the pursuit of self-interest. In a capitalist system, prices, production, and distribution of goods and services are primarily determined by the free market, allowing for individual initiative and entrepreneurship. The profit motive is a central driving force, incentivizing innovation and efficiency. However, critiques highlight concerns about income inequality and exploitation within this system.