Price Serves as a

question 122

Multiple Choice

Price serves as a

• A) rationing device.
• B) transmitter of information.
• C) means of determining who gets what of the available limited resources and goods.
• D) a and b
• E) all of the above

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Definitions:

Accounting Profit

The difference between total revenue and explicit costs, indicating the financial gain recorded in the books of accounts.

Entrepreneurial Talent

The unique set of skills, creativity, innovation, and risk-taking abilities that entrepreneurs possess to start and manage businesses.

Implicit Costs

Non-out-of-pocket costs, often opportunity costs, that represent the lost opportunity to use resources in an alternative way.

Short Run

The period of time during which at least one input, such as plant size, is fixed and cannot be changed.