What Is the Invisible Hand Property 1

question 11

Multiple Choice

What is the Invisible Hand Property 1?

• A) Central planners can achieve lower costs of production than self-interested profit-seeking firms.
• B) In a free market, the total costs of producing output are minimized because each firm produces up to the point where P = MC.
• C) Firms enter industries whenever P > AC.
• D) Firms shut down whenever revenues are insufficient to cover variable costs.

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