In order for a central planner to achieve the invisible-hand type efficiency of a free market, the planner would
A)need masses of statistics.
B)be required to makes enormous calculations.
C)need to be able to measure a consumer's marginal utility in order to equate MU with MC.
D)All of the above would be required.

Question

Quizplus · Accepted Answer

In order to achieve the same efficiency as a free market, a central planner would need to have access to masses of statistics and be able to make enormous calculations. They would also need to be able to measure a consumer's marginal utility in order to equate it with the marginal cost of producing goods and services. All of these factors together make it impossible for a central planner to achieve the same level of efficiency as a free market.

In Order for a Central Planner to Achieve the Invisible-Hand