Question

2. What type of firm is “better” for its owners? For workers? For consumers? For the environment? For the economy?

Answer 1

Answer : Firms are better will be decided by the goals achieved by the firm. If favourable goals of owners are achieved by firm then that firm will be better for owners but if same firm is not fulfilling goals of workers then same firm would not be good for workers.

Hence firm is better all depends upon whether goals are fulfilled of respective people related to firm or not. People related to firm are :

1) Owners : For owners that firm is best which yields higher profits and have higher return on investment. Firms on monopoly or oligopoly market will be best for owners.

2) Consumers : Consumer wants good quality products with huge variety at reasonable prices. The firm fulfilling this goal will be better for consumers. Firm under monopolistic market can fulfill consumer goals by providing huge variety of products ( heterogeneous products) at reasonable prices due to competition.

3) Workers : For worker firm are best which provides higher wage rates and provides safe working environment. Firms under monopolistic market and oligopoly market will be best which provides higher wage rates to workers.

4) Environment : Firms that make environment healthy and conserves natural resources will be best for environment. Firms that includes green jobs which consists of efficient process with decarbonisation of environment, creating less pollution ( air,water, land ) to environment , those firms will be best for environment.

5) Economy : Firms which make huge contribute to country's GDP will be best for economy. Firms which fulfills goals of owners , workers , consumers , environment will be best for economy.

Hence we concluded in above way firms will be better to respective people related to firms.

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