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Business Ethics

1. Opinion. The free market and only the free market should regulate business. The only efficient way to allocate resources is to through the market mechanism. The invisible hand of supply and demand will ensure that efficient producers survive and thrive and inefficient companies do not. The market mechanism ensures that consumers receive the widest possible choices of goods and services at the lowest possible prices resulting in utility maximization for them as a result of the their participation in a free market economy and all that implies in terms of freedom of choice relating to what to buy, where to live, how to live, whether to spend or save, and what occupation they choose to pursue.

2. Reasons in support of this opinion:

A. The concept of the free market is that of a pure economic system in which rational individuals allocate resources toward the production of goods and services based on the laws of supply and demand. It presumes there is no coercion, and that the marketplace is fair to the extent that new suppliers are free to come and go, and buyers have access to information, and hat buyers have unhindered access and free will in determining with whom they will do business and how much they will spend of their discretionary income. The essential element of the free market is its efficiency.

B. The alternative to a free market is one that is controlled by the government. In the twentieth century, communism was introduced not as a political theory but as an economic doctrine. For decades, countries such as the Soviet Union rejected the concept of free markets in favor of a centrally controlled and centrally planned economy. The communist system rejected the concept of the invisible hand. The communist governments believed they could dictate both supply and demand of goods and services by regulating every aspect of the economy. The result was economic chaos and untold amounts of suffering caused in larg...

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Business Ethics. (1969, December 31). In LotsofEssays.com. Retrieved 06:15, March 29, 2024, from https://www.lotsofessays.com/viewpaper/1688905.html