Economics (AS & A Level) · Oct / Nov 2021 · Paper 11 · Question 2
9708Resource allocation in different economic systems
Which statement about the behaviour of firms in a planned economy is correct?
- AFirms are sent signals to produce through the price mechanism.
- BFirms will operate in competitive markets.
- CFirms will attempt to make profits for the benefit of shareholders.
- DFirms are more likely to consider the private and external costs of production.
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Correct answer: D. Firms are more likely to consider the private and external costs of production.
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