Which of the following best describes the guiding function of competitive prices? When prices are in equilibrium,
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Question:
Which of the following best describes the "guiding function of competitive prices?
When prices are in equilibrium, product shortages or surpluses cannot occur
The market system can negotiate reallocations of resources which are appropriate to changes in consumers, technology, and resource supplies
The market system will always generate economic profits for firms which use the last costly production technology
Profitable industries tend to contract and unprofitable industries tend to expand
Related Book For
Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston
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