The price system has its largest informational advantage
A)any time exchange must take place and different individuals have comparative advantages.
B)when parties to exchanges are spread out and very close coordination is not necessary.
C)in government bureaucracy.
D)in large business enterprises where production is in many locations.
E)in small business enterprises where all production is one location.

Question

Quizplus · Accepted Answer

The price system efficiently conveys information about supply and demand across dispersed parties, facilitating exchanges without the need for close coordination.

The Price System Has Its Largest Informational Advantage