The allocative function of price is to:
A) distribute scarce goods and services to those consumers who value them the most highly.
B) ensure that firms in perfectly competitive markets earn an economic profit.
C) direct resources away from markets that are overcrowded and toward markets that are underserved.
D) provide subsidies to low-income families so they can purchase essential goods and services.
Correct Answer:
Verified
Q17: An example of an implicit cost is:
A)interest
Q18: Accounting profit minus implicit costs equals:
A)total revenues.
B)economic
Q19: Which of the following statements about implicit
Q20: Which of the following statements about explicit
Q21: Suppose Lando Calrissian owns a smuggling
Q23: The role that prices play in directing
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Q25: Suppose Juliana owns a small business making
Q26: If the owners of a business are
Q27: Adam Smith coined the term "invisible hand"
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