Which of the Following Statements About Resource Allocation Is Correct

Multiple Choice

Which of the following statements about resource allocation is correct?

A) Within a firm, resources are allocated by prices; in a market, resources are allocated by the decisions of managers.
B) Resources are allocated by prices both in a market and within a firm.
C) Within a firm, resources are allocated by the decisions of managers; in a market, resources are allocated by prices.
D) Resources are allocated by the decisions of managers both within a firm and in a market.
E) In a market, resources are allocated either by prices or by the decisions of managers; within a firm, resources are allocated by prices.