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Topic: Social Issues
Number of pages / Number of words: 6 / 1423
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The first is, as coined by Adam Smith, the Invisible Hand. Smith demonstrated that (Macfie 1998), “in a free market, an individual pursuing his own self-interest tends to also promote the good of his community as a whole through a principle that he called “the invisible hand”. He argued that each individual maximizing revenue for himself maximizes the total revenue of society as a whole, as this is identical with the sum total of individual revenues...


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He argued that each individual maximizing revenue for himself maximizes the total revenue of society as a whole, as this is identical with the sum total of individual revenues.” The second factor is competition (The System of the Economy 2008); the competition with several other producers and suppliers of products prevents companies from attempting to exploit the market or the consumers...


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