Efficiency comes about in perfectly competitive free markets when:
a. Firms are motivated to invest resources in industries with a high consumerdemand and move away from industries where demand is low.
b. Firms are encouraged firms to minimize the resources they consume to produce acommodity and to use the most efficient technologies.
c. Commodities are distributed among buyers such that buyers receive the mostsatisfying commodities they can purchase, given what is available to them and
the amount they have to spend.
d. All the above
e. A & B
Question 2
Identify the other theses that would be true if Rand's thesisthat there are no conflicts of interest at all between peoplewas also true.
A. If one accepts that there are no real conflicts of interest, one would have toalso accept Rand's thesis that the wealthy or talented should put the needs ofthe poor above their own and her thesis that one should always consider theself-interests of others.
B. If one accepts that there are no real conflicts of interest, one would have toalso accept Rand's thesis that in the face of conflict, one must help those inneed and her thesis that true altruism is nonexistent.
C. If one accepts that there are no real conflicts of interest, one would have to
also accept Rand's thesis that there is no duty to help those in need and her
thesis that true altruism is nonexistent.
D. If one accepts that there are no real conflicts of interest, one would have to
also accept Rand's thesis that one should use one's talent to help others and
her thesis that true altruism is a desired way of life.
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