Even if prices are ﬁxed and competition is restricted by the government, the invisible hand will still work
in the economy and lead to economic eﬃciency.

Question

Quizplus · Accepted Answer

The invisible hand theory assumes that markets are free of government intervention and competition is present. If prices are fixed and competition is restricted, the invisible hand cannot work to allocate resources efficiently.

Even If Prices Are ﬁXed and Competition Is Restricted by the Government