Question
In a market based economy, what is the role of prices transmitters / signals ? How do prices guide economic decisions and allocate scare resources
In a market based economy, what is the role of prices "transmitters / signals" ? How do prices guide economic decisions and allocate scare resources ? Explain the role prices play in balancing supply and demand for goods / services. Provide commentary and graphical analysis. Does the concept of opportunity cost (i.e. valuation of foregone benefits) play a role in the determination of prices?
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Organizational Behavior And Management
Authors: John Ivancevich, Michael Matteson
6th Edition
0072436387, 978-0072436389
