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A price system can be manipulated to promote efficiency by adjusting prices to reflect the true social costs of production and consumption. This can incentivize firms and consumers to make decisions that are more socially beneficial, such as reducing pollution or conserving resources. Additionally, price signals can be used to encourage innovation and investment in more efficient technologies and practices.

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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


What is price stabilisation?

Price stabilisation is the process whereby the market price of a security is manipulated inorder to a chieve a success


What is stabilisation?

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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.


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.


A total system of business activities designed to plan price promote and distribute want satifying products to target markets to achieve organizational objectives?

Marketing


When government imposes a price ceiling or a price floor in a market?

Efficiency in the market is enhanced.


How did consumers benefit from mass production?

The increased efficiency reduced the price.


What are Price reductions given to channel members to encourage them to promote or otherwise promote a firm's products locally?

Advertising allowances are given as price reductions to encourage advertising or promoting. It can also be given as a reimbursement to the merchant.


How can one determine how to find allocative efficiency in a market?

Allocative efficiency in a market can be determined by comparing the price of a good or service with the marginal cost of producing it. When the price equals the marginal cost, allocative efficiency is achieved. This means that resources are allocated in a way that maximizes overall societal welfare.


What promotes greater efficiency and lower price by protecting competition?

Antitrust laws