--%>

Explain Self-interest of the Market System

Explain Self-interest of the Market System?

E

Expert

Verified

a. Self interest is one of the driving forces in a market system. Entrepreneurs try to make the most of profits or minimize losses; resource suppliers try to maximize income; consumers maximize satisfaction.

b. As each tries to income, satisfaction, maximize profits the economy will benefit if competition is present.

   Related Questions in Business Economics

  • Q : Laffer curve & Tax rate Question: Do

    Question: Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change? Using the 'human capital' investment model,

  • Q : Explain how the Circular Flow Model for

    Explain how the Circular Flow Model for a Market-Oriented System?

  • Q : Divide of the study of economics MOST

    The study of economics is MOST frequently divided within: (1) positive economics and negative economics. (2) macroeconomics and microeconomics. (3) subjective economics and objective economics. (4) supply side and demand side economics. (5) conservative economics and

  • Q : External factors which influencing the

    Write down the external factors which influencing the capital structure?

  • Q : What 2 points are required to emphasis

    What 2 points are required to emphasis foreign exchange market?

  • Q : Speculators activities over the long-run

    Over the long-run the speculators activities are tend to: (1) decrease the volatility of prices. (2) attract legal attention and result in imprisonment. (3) increase the level and volatility of prices both. (4) yield tremendous profits and raise costs

  • Q : Competition among buyers and sellers is

    Illustrate Competition among buyers and sellers is a controlling mechanism?

  • Q : Advantages rising from division of

    Adam Smith known three advantages rising from divisions of labor which would lead to greater economic wealth that did not include the concept that the division of labor: (w) helps every worker refine specialized skill

  • Q : Market structure and pricing decision

    Just need help to see if I am in the right direction if there any think wrong need help with it.

  • Q : Founder of modern economics The person

    The person along with, arguably, the top claim to the name “founder of modern economics”: (1) John Stuart Mill. (2) Karl Marx. (3) John Maynard Keynes. (4) Joan Robinson. (5) Adam Smith. Hello guys I wa