Invisible Hand Property 1 says that without any single person in charge, free markets will result in equal ______ and price will be set to it.
A) average costs
B) marginal costs
C) fixed costs
D) demand curves

Question

Quizplus · Accepted Answer

The Invisible Hand Property 1 states that individual self-interest in a free market economy will lead to an efficient allocation of resources and equal marginal cost for all firms. This means that prices will be set to equal marginal costs, resulting in an optimal allocation of resources. Therefore, the correct answer is B) marginal costs.

Invisible Hand Property 1 Says That Without Any Single Person