Which of the following statements is not correct?
A) An invisible hand leads buyers and sellers to an equilibrium that maximizes total surplus.
B) Market power can cause markets to be inefficient.
C) Externalities can cause markets to be inefficient.
D) The invisible hand can remedy most if not all types of market failures.

Question

Quizplus · Accepted Answer

While the invisible hand can lead markets to efficiency under certain conditions, it cannot address all types of market failures, such as public goods and natural monopolies. Government intervention may be needed in such cases.

Which of the Following Statements Is Not Correct