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Does the invisible hand produce optimal results? why?

Does the invisible hand produce optimal results? why?

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Answer #1
  • No, invisible hand will not always produce optimal results.
  • Invisible hand is an unobservable force that helps the supply and demand in the market's to reach an equilibrium level and be productively efficient.
  • Market's are not always said to be productively efficient, they fail due to certain reasons.
  • Hence the presence of invisible hand doesn't mean that it will always produce optimal results. Even when the invisible hand is real, the market failure is an unavoidable case.
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