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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.
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In the classical economic model which of these rather then the government allocates the resources of the nation?
Price RAWRSAURS
How price system allocates scarce resource in free economy?
Scarce resources are allocated to those who are willing and able to pay the most in a free economy.
What are the resources allocation under perfect competition?
In economics, perfect competition is a structure that allocates resources as efficiently as possible. When this happens, price and marginal cost are equal.
What are the benefits of the price system?
Information Incentives Choice Efficiency Flexibility
What are he 4 characteristics of the price system?
Independent, flexibility, efficiency, and equality
In the classical economic model which of these rather then the government allocates the resources of the nation?
Price RAWRSAURS
How price system allocates scarce resource in free economy?
Scarce resources are allocated to those who are willing and able to pay the most in a free economy.
In the classical economic model which of these rather than the government allocates the resources of the nation?
i believe it would be consumption nope its price
What are the resources allocation under perfect competition?
In economics, perfect competition is a structure that allocates resources as efficiently as possible. When this happens, price and marginal cost are equal.
What are the benefits of the price system?
Information Incentives Choice Efficiency Flexibility
What are he 4 characteristics of the price system?
Independent, flexibility, efficiency, and equality
Efficiency of price mechanism in allocating resources?
Why the price mechanism is not always efficient at delivering public goods, merit goods and de-merit goods
When an accountant allocates the price of a piece of equipment over a period of time this is called?
Depreciation
What are the uses and advantages of price mechanism?
Basically the price mechanism acts as "an invisible hand" or signaling mechanism. They play a key role in allocating resources and the distribution of the national product. Consumers react to prices with higher or lower demand and producers act accordingly. In other words prices help producers determine the quantity supplied. If consumers demand is high at a certain price, then producers know that they ought to increase supply. If demand is low then they ought to reduce supply. ..that's the basic concept. For more I'd suggest reading some books on micro economics or stuff like Lipsey and Crystal. 1. IT ALLOCATES RESOURCES EFFICIENTLY.( DEMANDERS GET THE MOST FOR THEIR MONEY AND SUPPLIERS GET A GOOD PRICE FOR THEIR PRODUCT) 2.DEMAND AND SUPPLY ARE ABLE TO ACT NATURALLY. ECONOMIC EFFICIENCY.( THE ALTERNATIVE IS A CENTRALIZED SYSTEM WITH THE GOVERNMENT ALLOCATION RESOURCES. THIS RAISES THE QUESTION," DOES THE GOVERNMENT KNOW WHAT IS BEST FOR THE PEOPLE?") these are quotes from my economics book.
Disadvantages of price mechanism?
Price mechanism is the system where supply and demand are what determines prices of products or services. Unemployment, inflation, and uneven distribution of resources are disadvantages of price mechanism.
What is the definition of cost efficiency?
cost efficiency is how good what you paid for was for the price you paid for it. it pretty much rates the quality and the price as a comparison in one.
Why are consumers and producers both important to a free-enterprise economic system?
To be succinct, the market mechanism allocates an efficient price vector solution to the distribution of a commodity conditional of the assumptions that that consumers and firms exist and that they have the freedom to buy as they please.
