Which Is Not a Purpose That Prices Play in a Market

question 21

Multiple Choice

Which is not a purpose that prices play in a market?

• A) Prices communicate information about consumer preferences.
• B) Prices give buyers a means of comparing goods that are substitutes.
• C) Prices rarely change, which allows markets to be more stable.
• D) Prices can help sellers determine what goods to sell.

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Definitions:

Product Costs

Expenses directly associated with the production of goods or services, including materials, labor, and overhead.

Service Level

A measure of the quality of service provided, including the speed, reliability, and responsiveness of service to meet customer expectations.

Salvage Value

The estimated residual value of an asset at the end of its useful life.