I’m studying for my Economics class and need an explanation.
Go to my announcement on Monday September 21. Complete my explanation of self interest. What happens when the baker wants a Ferrari ?
Explain utility maximization and compare and contrast utility maximization with self interest. Finally explain how they work in tandem in a free market economy.
Teacher’s Announcement: The discussion on self interest was absolutely off point, Adam Smith wrote in the Wealth of Nations that it is through the self interest of the butcher, baker and brewer to have more for themselves that they work to get more for themselves and in doing so provide more for society.
I am a baker and I want a Ferrari, I am going to work like mad baking bread because I need a lot of money to buy the car. I just care about getting more for myself. I have self interest and because I want more I work hard making more bread as efficiently as possible to bring in money to me. My hard works directly benefits me but it also benefits society. I will post a for credit discussion to see if you can explain how and draw the economic principals from this.