The Market Solves the Incentive Problem When Allocating Resources Because

question 185

Multiple Choice

The market solves the incentive problem when allocating resources because the:

• A) consumers will pay for the good only if its price is greater than the value of use.
• B) consumers will pay for the good only if its value of use is greater than the price.
• C) suppliers will produce the good only if its cost is less than the value of use.
• D) suppliers will produce the good only if its value of use is less than the cost.

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