Economic Decision

Marcroeconomics

“The Invisible Hand”

Analysis:

The invisible hand is the tendency of firms and resource suppliers to seek and further their own self-interests in competitive markets and to also promote the interests of society as a whole. This theory guides competitive firms to promote self-interests as well as public interest. When it comes to producing and selling a product the owners or the people that run the business want to do it in the most efficient way possible. If the business itself is producing a product that society wants in an efficient way and in a mannerly fashion it is only in the public’s best interest for them to buy that product. One thing that any person wants when running a business is maximum output at the least cost and this goes along with the invisible hand method. If a business is running in the least costly way and in the most efficient way it maximizes or enhances society’s output and