The "invisible hand" in a competitive market pushes the firms in the market to

A) charge a price that is equal to their marginal revenue.
B) produce an output level that allows them to earn some positive economic profits.
C) use resources and produce output that maximize consumer and producer surplus.
D) operate where their individual demand curve is above their long-run average cost curve.

Invisible Hand

A metaphor coined by Adam Smith to describe the self-regulating nature of the market, where individuals pursuing their own interests inadvertently benefit society as a whole.

Competitive Market

A market structure characterized by a large number of buyers and sellers where no single party can dictate the market price of goods or services.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, often a measure of producer wellbeing.