The invisible hand guides the production of optimal quantities of public goods, just as it does for private goods.

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The concept of the invisible hand, coined by Adam Smith, refers to the unintended social benefits that result from individual actions. However, the provision of public goods, such as national defense and public parks, often requires government intervention because of the free-rider problem. Therefore, the optimal quantities of public goods are not determined solely by the market forces driven by the invisible hand.

The Invisible Hand Guides the Production of Optimal Quantities of Public