Allocation without prices

Allocation without prices

1. Allocation is a system of distribution

2. In the present, allocation is done with prices.

3. Prices or the value of products are determined by the products themselves.

4. Some problems of rationing: Problem of fairness High administrative cost Diminished incentives

5. Another example of allocation is rationing which is a system under which a government agency decides everyone's fairs share by giving people a ration coupon.

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