Question

The Invisible Hand Theorem states that the market system will generally answer which of the following...

The Invisible Hand Theorem states that the market system will generally answer which of

the following question(s) correctly?

A.

For whom to produce?

B.

How to produce?

C.

What to produce?

D.

B and C are both correct.

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Answer #1

Ans is D

Invisible hand theorem states that individual will work in their self interest and will produce the commodity such that it maximises their profit. When all firm or individuals work in order to maximise their profit then all firm will produce at the minimum cost possible leading to slovency of How to produce. Because all firms wants to minimise the cost and will use the technoligy which is efficient. Also which commofity is produced depends on theit profit and thus what to produce can also be solved automaticaly. Thus ans is d

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