Multiple Choice QuestionWhich of the following helps allocate resources among alternative lines of production, distribution, and sales?Multiple choice question.InterestLoanable fundsLaborProfit
Question
Multiple Choice QuestionWhich of the following helps allocate resources among alternative lines of production, distribution, and sales?Multiple choice question.InterestLoanable fundsLaborProfit
Solution
The correct answer is Profit.
Profit helps allocate resources among alternative lines of production, distribution, and sales. This is because businesses aim to maximize their profits. They do this by allocating their resources in such a way that they can produce and sell goods and services at the lowest cost and highest price. If a line of production is not profitable, resources will be reallocated to more profitable lines. Similarly, if a distribution or sales method is not profitable, resources will be reallocated to more profitable methods.
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