Which of the Following Is a Function Performed by Market

question 342

Multiple Choice

Which of the following is a function performed by market prices?

• A) Market prices communicate information to buyers and sellers.
• B) Market prices coordinate the decisions of buyers and sellers.
• C) Market prices motivate entrepreneurs to produce those products that are currently most desired relative to their costs of production.
• D) All of the above are functions performed by market prices.

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Definitions:

Competitive Advantage

Achieving a superior position in the marketplace through distinctive products, services, or processes that competitors find difficult to replicate.

Manufacturing Costs

Expenses directly related to the production of goods, including raw materials, labor, and overhead costs involved in the manufacturing process.

Market Price

The current price at which an asset or service can be bought or sold in a marketplace, determined by supply and demand.

Competitive Advantage

The attribute or set of attributes that allows an organization to outperform its competitors.