If a market system is functioning well, we can conclude that goods with
A)high opportunity costs tend to have high money costs.
B)low opportunity costs tend to have high money costs.
C)high opportunity costs tend to have low money costs.
D)low opportunity costs tend to have zero money costs.
E)high opportunity costs tend to have zero money costs.

Question

Quizplus · Accepted Answer

In a functioning market system, goods with high opportunity costs (meaning the resources used to produce them could have been used to produce other goods) will tend to have high money costs because producers need to charge enough to cover their costs and make a profit. Similarly, goods with low opportunity costs will tend to have lower money costs because it is easier for producers to cover their costs and make a profit. However, there is not necessarily a direct correlation between opportunity cost and money cost, as many other factors can affect prices in a market system.

If a Market System Is Functioning Well, We Can Conclude