“Prices perform three functions in organizing economic activity: first, they transmit information; second, they provide an incentive to adopt those methods of production that are least costly and thereby use available resources for the most highly valued purposes; third, they determine who gets how much of the product[.]” -
Milton Friedman[There seems to be q lot of confusion around prices by people who want the world to conform to their idealized views of things rather than conforming their thinking to observations about reality. I thought I'd share Mr. Friedman's words on prices to help inform them of their ignorance.]
![“Prices perform three functions in organizing economic activity: first, they transmit information; second, they provide an incentive to adopt those methods of production that are least costly and thereby use available resources for the most highly valued purposes; third, they determine who gets how much of the product[.]” -Milton Friedman](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg_dDz95UwM7sUcL8rsAqn8oyuWhmoksjm2pu0IS9ebkYk-BJMULz_4244xTXowU4aiPADdI8p2i4yvMGajD2C36GMlRzomUS5aC2NSRSRfKXPPncp_cXz00Pl2LWbbMenHZxD831Z1hps/s792/2021-12-01.png)
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