The Allocative Function of Price Is To

question 140

Multiple Choice

The allocative function of price is to:

• A)distribute scarce goods and services to those consumers who value them the most highly.
• B)ensure that firms in perfectly competitive markets earn an economic profit.
• C)direct resources away from markets that are overcrowded and toward markets that are underserved.
• D)provide subsidies to low-income families so they can purchase essential goods and services.

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Definitions:

Organisational Structure

Organisational structure is a system of tasks, workflows, reporting relationships and communication links.

Communication Channels

The mediums through which information is transmitted from a sender to a receiver, such as emails, phone calls, and social media.

Workflows

The sequence of processes through which a piece of work passes from initiation to completion in an organizational setting.

Organisation Structure

The arrangement of roles, responsibilities, and relationships within an organization, defining how activities are directed towards achieving its goals.