Asked by Iliana Napoles on May 07, 2024

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Well-functioning markets allow:

A) mutually beneficial trades to take place.
B) consumers to gain at the expense of producers.
C) producers to reap greater benefits,since they have greater power in the market.
D) property rights to be unnecessary components of effective distribution.

Mutually Beneficial Trades

Exchanges between parties that provide benefits or gains to all involved, enhancing their welfare or utility.

Well-Functioning Markets

Markets that efficiently allocate resources through the mechanism of supply and demand, leading to optimal outcomes for both buyers and sellers.

  • Gain insight into the idea of bilaterally beneficial trades in relation to optimizing market performance.
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AU
Aidai UranbekkyzyMay 14, 2024
Final Answer :
A
Explanation :
Well-functioning markets allow mutual beneficial trades to take place, meaning both consumers and producers are able to gain from the exchange. This promotes efficiency and optimal allocation of resources in the economy. B, C, and D are incorrect because they promote a one-sided gain for either the consumers or the producers, and ignore the importance of property rights in maintaining a functioning market.