The market for apples achieves an efficient allocation of resources when prices respond and send signals to producers and consumers.That set of interactions requires that producers possess:
A) lobby access to government.
B) monopoly power.
C) property rights to the apples they grow.
D) the ability to set any price they choose for their apples.

Question

Quizplus · Accepted Answer

Property rights to the apples they grow allow producers to have control over the supply of apples and be able to sell them in the market. This, in turn, enables the price mechanism to work and efficiently allocate resources. Lobby access to government or monopoly power would distort market signals, and the ability to set any price they choose is not a feasible option in a competitive market.

The Market for Apples Achieves an Efficient Allocation of Resources