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20 January, 21:14

55. According to Adam Smith and other economists, the minimization of total costs in a competitive industry a. results from the conscious actions of well-intentioned central planners. b. results from resources being effectively allocated by trade boards. c. is neither planned nor intended but results from individuals pursuing their own self-interest. d. arises from a high level of cooperation among businesses, in terms of input and output plans.

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  1. 20 January, 22:58
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    The correct answer is option c.

    Explanation:

    Adam Smith and other economists advocated that in a competitive industry, the total cost is minimized through the actions of the individuals who are pursuing their self-interest. It is not intended or pre-planned.

    Adam Smith believed that individuals are led by an invisible hand or market forces to maximize their own profits and lead to the overall welfare of society.

    If consumers and producers are allowed to make their decisions freely, it would lead to production and price determination such that all members of the society are benefited.
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