When Prices Are Determined in a Free- Market System

question 61

Multiple Choice

When prices are determined in a free- market system

• A)demand shifts,caused by price changes,coordinate all necessary changes in the economy.
• B)changes in the economy can be foreseen by officials.
• C)supply shifts,caused by price changes,coordinate all necessary changes in the economy.
• D)resources are allocated without conscious central coordination.
• E)firms respond to changes in the economy mainly by altering the wage rate.

Grasp the roles and responsibilities of designated category leaders.

Learn how demand uncertainty affects manufacturer-retailer relationships and the use of contracts to ensure product availability.

Understand the foundational elements necessary for successful collaborative planning, forecasting, and replenishment (CPFR) in supply chains.

Understand the concept and disadvantages of vendor-managed inventory.

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Definitions:

Economically Efficient

A state where resources are allocated in a way that maximizes the net benefit to society, with no waste.

Total Costs

Represents the complete expenditures incurred by a firm or an individual in the production or purchase of goods and services.

Economic Profit

The profit a company makes after deducting both its explicit costs (like materials and wages) and its implicit costs (like opportunity costs), representing the additional amount earned over what could have been earned from the next-best alternative.

Labor And Capital

The primary factors of production where labor refers to the work done by humans, and capital refers to financial assets or physical tools and machinery used to produce goods and services.