The market solves the information problem when allocating resources by: collapsing all the relevant information about uses of the good into its price. aggregating all the relevant information about the output of the good into the supply curve. aggregating all the relevant information about the output of the good into the demand curve. collapsing all the relevant information about inputs of the good into the level of output.

The market solves the information problem when allocating resources by: collapsing all the relevant information about uses of the good into its price. aggregating all the relevant information about the output of the good into the supply curve. aggregating all the relevant information about the output of the good into the demand curve. collapsing all the relevant information about inputs of the good into the level of output.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter14: Transaction Costs, Imperfect Information, And Behavioral Economics

Section: Chapter Questions

Problem 15PAE

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