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What Is Meant by the Rationing Function of Prices

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What is meant by the rationing function of prices?


Definitions:

Cash Flows

The net amount of cash and cash-equivalents being transferred into and out of a business, used to evaluate its financial health.

Operating Activities

Activities that are part of a company's primary business operations, such as selling goods and services.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenue.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments not included in cash equivalents.

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