Which of the following is not a condition that is required for the invisible hand to minimize total costs of production and to achieve the proper balance of industries? a

Marketing Dec 26, 2020

Which of the following is not a condition that is required for the invisible hand to minimize total costs of production and to achieve the proper balance of industries?

a. Prices must accurately signal costs.

b. Markets must be competitive.

c. Prices must accurately signal benefits.

d. Markets must be regulated.

Expert Solution

The correct option is:

d. Markets must be regulated

The free market economy is the primary condition for the invisible hands to work. In case of regulated markets, they may not work efficiently.

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