The Originator of the Idea of the Invisible Hand,which Is

question 4

Multiple Choice

The originator of the idea of the invisible hand,which is a fundamental concept in free market capitalism,was

• A)Adam Smith.
• B)Theodore Levitt.
• C)Norman Bowie.
• D)Herman Miller
• E)Milton Friedman.

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Definitions:

Perfect Knowledge

A hypothetical situation in economics where all consumers and producers have complete and instantaneous knowledge of all market prices, conditions, and trends.

Perfect Mobility

A theoretical condition where factors of production, such as labor and capital, can be freely moved from one use to another without costs or barriers.

Marginal Revenue

The revenue increment achieved by selling an extra unit of a product or service.

Marginal Cost

The expense associated with manufacturing an additional unit of a product or service.