Give an example illustrating how a firm acting out of self-interest to maximize its profits by offering goods or services in economic markets benefits consumers – even if it does not care about them.

Portion 1: Minimum 350 Words (The Concept of Rational Choice

• Give an example illustrating how a firm acting out of self-interest to maximize its profits by offering goods or services in economic markets benefits consumers – even if it does not care about them. In other words, how does self-interest help achieve society’s economic goals?
• Give an example illustrating how a firm acting out of self-interest can have deleterious effects on consumers. Why might consumers allow firms to behave in this way? Are there ways in which a firm acting out of self-interest might be harmful to society?

• What is the relationship between self-interest and social interest in the economic decision (economic choice) process? Is there a conflict between the two in the economic world?
• Do people always make rational decisions? What are the factors that lead to bounded rationality? What are the factors that lead to irrational economic decisions?

Portion 2: Minimum 350 Words (Price Control and their Impacts

• What would happen to the supply and demand of Super Bowl tickets if the government mandated that no more than $20 a ticket could be charged?
• What would happen to supply and demand if a law passed dictating that kindergarten teachers could make no less than $100,000 per year?