5 A free market solves the information problem because the m

5. A free market solves the information problem because the market price reflects: the value of the good\'s next highest-value use. B, the opportunity cost of the good. both the value of the good\'s next highest-value use and the opportunity cost of the good C C. D. the amount of profit that producers desire to make.

Solution

C is correct

Free market solves the information problem because market price reflects both the value of the goods next highest value use and opportunity cost because in free market equilibrium is attained at the intersection of demand curve( which shows highest value use) and supply curve (which shows opportunity cost of producing that good).