The Social Thinker Whose Ideas Most Supported the Operation of a Free-Market

question 2

Multiple Choice

The social thinker whose ideas most supported the operation of a free-market economy was

• A)Thorstein Veblen.
• B)Adam Smith.
• C)Karl Marx.
• D)Max Weber.

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Definitions:

Mutual Interdependence

A situation in a market where the actions of one firm significantly impact the profitability of other firms within the same market.

Barriers to Entry

Obstacles that make it difficult for new competitors to enter a market, including high startup costs, strict regulations, or strong incumbents.

Excess Capacity

The situation where a firm or economy can produce more goods or services than currently produced, indicating under-utilization of resources.

Marginal Costs

The additional cost incurred by producing one more unit of a product, which can vary as production scales.