Which of the Following Statements About Resource Allocation Is Correct

question 191

Multiple Choice

Which of the following statements about resource allocation is correct?

• A)Within a firm, resources are allocated by prices; in a market, resources are allocated by the decisions of managers.
• B)Resources are allocated by prices both in a market and within a firm.
• C)Within a firm, resources are allocated by the decisions of managers; in a market, resources are allocated by prices.
• D)Resources are allocated by the decisions of managers both within a firm and in a market.
• E)In a market, resources are allocated either by prices or by the decisions of managers; within a firm, resources are allocated by prices.

---

Definitions:

Brand Equity

The value and strength of a brand based on recognition, associations, and loyalty of consumers towards the brand.

Firm's Balance Sheet

A financial statement that provides a snapshot of a company's assets, liabilities, and equity at a specific point in time, offering insights into its financial health.

User Value

The significance or benefit that a product or service provides to its users, determining its appeal and usefulness.

Intangible Assets

Assets that lack physical substance but hold value for a company, such as brand reputation, intellectual property, and goodwill.