C6S2 - Prices as Signals and Incentives

The twin desires of making the highest profit and luring customers away from rival producers often result in

• competitive demands

• competitive needs

• competitive pricing

• competitive rationing

The price system is

• flexible

• inflexible

• stationary

• unreliable

In the price system, incentives encourage producers to act in certain ways consistent with

• the consumer’s best interest

• the government’s best interest

• their competitor’s best interest

• their own best interest

The equilibrium price in the market is determined by

• consumers and producers

• consumers and stock investors

• the government and producers

• the government and stock investors

The success of the Dell company was caused by

• producing computers at a lower price than competitors

• producing computers at a higher price than competitors

• producing faster working computers than competitors

• producing more durable computers than competitors