Question

In a marketplace prices? A-are determined by politicians and regulators B act as incentives that allow...

In a marketplace prices?

A-are determined by politicians and regulators

B act as incentives that allow for efficient allocation of resources

C act as a measure of value and do not affect allocation of resource

D are determined through,auctions

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Answer #1

Not all the places price is determined by regulators and that is the reason why market forces come into play where they determine the price and quantity of the market. not always price is a measure of value and price depends on efficient allocation of resources well and in this regard is the value of a product is less but you didn't allocate the resources accordingly such as your having a poor supply chain then the price can increase. Prices are not determined through options and it is not legal practice and therefore

(a,c,d) are wrong

When you allocate the resources efficiently, the cost of production will be less and price would be the reward for efficient allocation as a result of which you would benefit more and the price depends on allocation of resources and therefore

(b) is the answer to this question

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