The allocative function of price cannot operate unless there is:
A)a significant barrier to entry.
B)both free entry and free exit.
C)either free entry or free exit.
D)neither free entry no free exit.

Name: The allocative function of price cannot operate unless there is: A)a significant barrier to entry. B)both free entry and free exit. C)either free entry or free exit. D)neither free entry no free exit.
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Question

Quizplus · Accepted Answer

Free entry and free exit are necessary for firms to respond to economic profit and loss.

The Allocative Function of Price Cannot Operate Unless There Is