Which of the following statements is true?

a

As a firm becomes more profitable, the firm is able to purchase more capital goods with state-of-the-art technology. This in turn will allow the firm to consolidate its position in the market or expand to new markets.

b

In his book "The Wealth of Nations" (1996), Adam Smith introduced the concept of the "invisible hand", the idea that individuals, by pursuing their own self-interest, will make society achieve its greatest possible level of well-being.

c

The market system encourages skill acquisition and hard work because you will be rewarded for your efforts.

d

All of the above.

e

Only a) and c)