Question

Which explanation accurately describe Adam Smith's concept of the"natural price"

Answer 1

C. The price of any item that is equal to the costs of producing it

Answer 2

Answer: C. The price of any item that is less than costs of producing it.

It is also known as "normal price" or "center of gravitation price" . By "natural" Smith meant that it is the price that would result if competition was truly free, without being obstructed by monopoly, or the government regulation.