The Invisible Hand Property 2 maintains that:
A) the right mix of resources will be found in each industry, maximizing the total value of production.
B) entry barriers prevent profit signals from working in competitive markets.
C) resources are allocated by greatest need for the greatest number.
D) production costs are minimized.

Question

Quizplus · Accepted Answer

The Invisible Hand Property 2 states that in a competitive market with no entry barriers, the right mix of resources will be found in each industry, maximizing the total value of production. This means that firms will produce goods and services that are valued most by consumers while minimizing production costs, leading to an optimal allocation of resources. B, C, and D are not accurate explanations of this property.

The Invisible Hand Property 2 Maintains That