Under Competitive Conditions, Market Prices

question 144

Multiple Choice

Under competitive conditions, market prices

• A) generally convey little information about the value and cost of goods.
• B) do not usually have much of an effect on the decisions of individuals.
• C) are incapable of coordinating the actions of buyers and sellers.
• D) generally bring the self-interest of individuals into harmony with the general welfare.

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Definitions:

Price

The amount of money required to purchase a good or service, which can fluctuate based on supply and demand dynamics.