According to Adam Smith when big corporations pursue their self-interest of maxi

Question

According to Adam Smith

when big corporations pursue their self-interest of maximum profit, they will inevitably conflict with social interest.

in a market transaction buyers can either get what they want for less than they would be willing to pay or sellers can earn a profit, but both buyers and sellers can't gain simultaneously.

politicians are well-equipped to regulate corporations and intervene in markets to improve market outcomes.

government intervention in markets is not desirable because an invisible hand leads decisions made in pursuit of self-interest to unintentionally promote the social interest.

when big corporations pursue their self-interest of maximum profit, they will inevitably conflict with social interest.

in a market transaction buyers can either get what they want for less than they would be willing to pay or sellers can earn a profit, but both buyers and sellers can't gain simultaneously.

politicians are well-equipped to regulate corporations and intervene in markets to improve market outcomes.

government intervention in markets is not desirable because an invisible hand leads decisions made in pursuit of self-interest to unintentionally promote the social interest.

Explanation / Answer

government intervention in markets is not desirable because an invisible hand leads decisions made in pursuit of self-interest to unintentionally promote the social interest.

Adam Smith's concept of 'Invisible Hand' was given by him in the book "The Wealth of Nations". As per him an economy will work well in a free market way where the buyers and the sellers are working towards their own interests. If any other factor involves in the process then it will get messed up. According to him government intervention was not at all required and he mentioned it as Invisible hand and this will be done for self interest and it will lead to social interest which in turn will ruin the market equilibrium.

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