Question

The primary aim of a free market is to make a profit. Competition rather than regulation keeps bad behavior in check, and companies work hard to differentiate themselves in order to make more profit. In a social contract environment, outside forces such as regulation, laws, enforcement and outside governance produce limits to a corporation’s power and reach. As a consumer, which approach are you most comfortable with, Free Market or Social Contract and why? As a business owner, which approach would you rather follow and why?

Answer 1

As a consumer, i would prefer the Free Market approach.

Explanation:

A free market approach gives companies the ability to work hard and differentiate themselves in order to make profit, this means that companies will be working hard to make their products better in order to please the consumer. Companies will be producing products that fit customer demand and this benefits the consumer given that they will have access to products and services that meet their quality.

This would also be the same approach i would prefer as a business owner, a free market approach gives a business the ability to make profits easily as compared to a social contract approach. A free market approach gives your business the ability to differentiate it's products and services as it likes in order to please customers and in the case where customers like your products, then you are able to make sales and generate profits and this benefits you as the business owner.