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the 5 advantages are Neutral, Flexible, Freedom of choice, No administrative cost and lastly Dimished incentives. the 5 advantages are Neutral, Flexible, Freedom of choice, No administrative cost and lastly Dimished incentives.
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How does the price system allocates resources efficiency?
The price system allocates resources efficiently because prices act as a kind of signal to both producers and consumers in terms of resource allocation. Resource allocation is utilized in strategic planning.
What prompts efficient resource allocation in a well-functioning market system?
A number of things will prompt efficient resource allocation in a well-functioning market system. The quantity and the price of the commodities are the main aspects.
What ia an allocation of scarce resource using some method other than price?
Rationing
Price floors and ceilings stifle the rationing function of prices and distort resource allocation?
Economists have said that "price floorsand price ceilings stifle (prevent) the rationing function of prices and distort resource allocation." Consider what happens after a hurricane, prices are often frozen to pre-hurricane prices through "price gouging laws" to protect the consumer. Is this an example of a price ceiling or a price floor?This occurs for gasoline as well as for groceries and other products that might be in high demand after the damage of a hurricane. What is the impact in the market place of these limits?
Describe the allocation of resources in market and mixed economic systems?
In a free market where the demand and supply of resources as return to factors are determined by market forces to determine the resource allocation usually owned by private Enterprise through price mechanism, although government control to some extent also determines the allocation of resources for auxiliary or subordinate production of goods and services in a mixed economic system by planning in the production possibilities by the scarce resource allocation .
What has the author Harvey Lapan written?
Harvey Lapan has written: 'Price uncertainty, information, and resource allocation' -- subject(s): Mathematical models, Prices, Trade adjustment assistance, Uncertainty
What do economists mean when they say that price floors and ceilings stifle the rationing function of prices and distort resource allocation?
When economist says price floors means above equilibrium and leads to undermanned surplus. When they say price ceilings it means price below equilibrium which leads to unsupplied shortage.
What are the advantages of leaving the allocation of a country's resources to the price mechanism?
If relatively weak conditions are satisfied, then whatever allocation of resources results from the use of the price mechanism cannot be improved upon for any person in the country without harming someone else. The main conditions required are: 1. Either a finite number of agents or goods. 2. No externalities. That is, the consumption of one person should not harm or benefit anyone else. 3. No matter how much a person is consuming, they must be able to be made slightly happier by consuming a bit more of something. This result is the First Fundamental Theorem of Welfare Economics.
Advantages and disadvantages of price legislation?
what is the advantages and disadvantages of price legistlation
What are some advantages of the Sony Mylo?
"The advantages of the Sony Mylo are feature and performance. CNET is a great technology resource to use in looking up product information. This site will offer information on price, performance and rating for the Sony Mylo."
What is a Price-coordinated economy?
A price coordinated economy is one where prices determine the allocation of scarce goods and services.
What are Advantages of accounting for price level changes?
advantages of price level accounting
