Under competitive conditions, market prices
A) generally convey little information about the value and cost of goods.
B) do not usually have much of an effect on the decisions of individuals.
C) are incapable of coordinating the actions of buyers and sellers.
D) generally bring the self-interest of individuals into harmony with the general welfare.

Question

Quizplus · Accepted Answer

Market prices under competitive conditions reflect the value and cost of goods, guiding individuals to make decisions that align personal interests with societal benefits, thus coordinating the actions of buyers and sellers effectively.

Under Competitive Conditions, Market Prices