Explain the roles of prices in solving the economic problems of production, technology...?

Question

Help please! Explain the roles of prices in solving the economic problems of production, technology, and income distribution. Can someone help explain this? I'm taking microeconomics, and I just don't get it! Thanks in advance.

Answer 1

Regarding production it's simple - prices just help to regulate resource distribution - using demand and supply equilibrium tool.

As for technology - prices are costs of inputs for research and production (partially included in first description).