Which of the following is not an advantage of using a market system to allocate goods...

Which of the following is not an advantage of using a market system to allocate goods and services?

a. Marginal decision-making results in mutual advantage for both parties in a transaction.

b. The desire to maximize returns produces impersonal and non-biased transactions.

c. Competitive markets provide buyers the best product at the lowest price.

d. None—all are advantages.

Solutions

Expert Solution

Market system to allocate goods and services are economy situation where government has less intervention on market condition. Allocation of goods and services are done according to the situation and circumstances in the market. The two indicators of market system is demand and supply . Market forces decide which goods to produce and on which rate it should be sold everything will be decided by the demand and supply of that product.

Above given all the statement are the advantages of market system as it gives advantages to both the parties buyer and seller. Products are produced on the basis of demand and supply for the product in the market. Market is a competitive efficient market where every producer has chance to increase demand for his products with good quality and competitive prices.

Market system of economy improve the efficiency of the production , improvement in quality and quantity of products to meet the demand of the market. Brings new innovations and different ideas to create new product which attracts large demand from buyer.

Rahul Sunny answered 1 year ago

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