The price mechanism

A) works best when many competing business firms are in each industry.
B) works best when government through a central planning agency sets prices.
C) works best when corporations set prices for a market economy.
D) All of the choices are true about price mechanism.

Price Mechanism

The system by which the prices of goods and services are determined in a free market, based on the principles of supply and demand.

Central Planning Agency

An organization responsible for directing economic activity according to a comprehensive plan, often in a centrally planned economy.

Business Firms

Entities that engage in commercial, industrial, or professional activities with the goal of generating profits for their owners or shareholders.