What Is the "Invisible Hand" of Adam Smith

question 4

Short Answer

What is the "invisible hand" of Adam Smith?

---

Definitions:

Monopoly Power

Monopoly Power is the ability of a monopoly firm to set and control prices due to the lack of competitive market forces.

Wheat Farm

A type of agricultural establishment primarily engaged in the cultivation of wheat.

Natural Monopoly

A scenario in which a single company is able to offer a product or service more cheaply than any possible rivals, usually as a result of benefiting from the economies of scale.

Profit-Maximizing

Profit-maximizing is the process or strategy employed by businesses to adjust their production and sale operations to achieve the highest possible profit.