A manufacturer of blankets knows heavy 100% wool blankets sell better in the New England area where winters are harsh and that the lighter-weight blankets sell better in the Southeast market where mild winters require fewer and lighter bed covers. Segmenting the market according to climate is an example of segmentation.

Which of the following is a function performed by market prices? a. market prices communicate information to buyers and sellers. b. market prices coordinate the decisions of buyers and sellers. c. market prices motivate entrepreneurs to produce those products that are currently most desired relative to their costs of production. d. all of the above are functions performed by market prices.