what is the core values of capitalism that allows the free market to achieve efficiency ?
- 10 years agoFavorite Answer
Firms seek profit, this is capitalism. Capitalism rewards firms who achieve the lowest possible costs to make their goods/services with higher profits, thus firms strive to be efficient as it increases profit.
As well as that the more profit that can be made the more that can be invested in new technologies which allow a firm to be even more efficient.Source(s): Eco degree student
- 10 years ago
BEING SELFISH!!! If everyone acted in their own best interests, productivity is increased. Ask Sam Walton, J.D. Rockefeller etc...when you rely on other people to "bail you out" or give you a handout, you lost time that you could be working for yourself. If I sell my product for the same price, and pay my employees one third or one half the wage, I doubled profits. The only down side of a complete unrestricted free market is that eventually everyone will "maximize profits", making the rich richer and the poor poorer, making the middle class extinct.
- Eddy TLv 710 years ago
Commercial freedom and the corner-stones of Banking which is liquidity,profitability and security.