Prices play a smaller role in _____, in contrast to other modes of governance like _____ and _____.
A)hierarchies; markets; contracts
B)contracts; hierarchies; markets
C)markets; hierarchies; contracts
D)etiquette; markets; contracts

Question

Quizplus · Accepted Answer

In hierarchies, such as within organizations or bureaucracies, decisions about resource allocation and activities are often made based on authority or rules rather than prices. In contrast, markets rely heavily on prices to guide decisions, and contracts, while they can specify prices, are also a form of governance that can rely on legal or negotiated terms beyond just price mechanisms.

Prices Play a Smaller Role in _____, in Contrast to Other