Determine the optimal market behaviour

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Reference no: EM133181407

Milton Friedman offers two sets of justification for his claim that the responsibility of managers is simply to maximise profits: one set of justification is distinctively moral, where the concern is for how managers use the property shareholders; the other set is economic, focusing on how acting selfishly leads to optimal market behaviour. Interestingly, Friedman argues that the economic set of justification also has a moral flavour -- optimal market behaviour is in everyone's best interest!

In your opinion:

(1) Do you think that optimal market behaviour actually depends on economic agents acting purely in their own self-interest?

(2) Would you be willing to give up optimal market behaviour for the sake of ensuring that people act more altruistically or in line with what's morally right?

Reference no: EM133181407

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