When does the pursuit of profit benefit a market? 1) as long as investors engage in profit sharing 2) as long as self-interest is limited by regulation 3) as long as the profit is reinvested in social goods 4) as long as competition is a component of the market

Question

Social Studies

Deacon Rivers

30 September, 20:08

When does the pursuit of profit benefit a market? 1) as long as investors engage in profit sharing 2) as long as self-interest is limited by regulation 3) as long as the profit is reinvested in social goods 4) as long as competition is a component of the market

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Answers (1)

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Anderson · Answer 1

The time when the pursuit of profit benefits a market is:

2) as long as self-interest is limited by regulation

Explanation:

The reason behind this answer is: the pursuit of profit is the action of trading an item that increases in value at a sustained rate of demand. Very often it is overpriced and the fee paid for it is no longer rational. So, to benefit the market it has to follow this statement: 2) as long as self-interest is limited by regulation. The reason behind is because the market can be manipulated by a party and engulf buyers to it to sell them the product at a higher price after a bubble has been created on it. Like the tulip bubble.