Competitive markets channel the self-interest of business leaders toward social prosperity, whereas poor institutions that limit competition channel the self-interest of business leaders toward social destruction.

Question

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Competitive markets create incentives for businesses to produce goods and services efficiently and at a low cost, which benefits consumers and society as a whole. In such markets, businesses must compete for customers through better quality products, lower prices, and innovations. By contrast, poor institutions that limit competition, such as monopolies and government regulations that discourage entrepreneurship, can lead to distorted pricing, reduced innovation, and decreased access to goods and services. In such cases, business leaders may pursue short-term profits at the expense of long-term social prosperity.

Competitive Markets Channel the Self-Interest of Business Leaders Toward Social