your friend is a business owner in a market economy. what decides how to allocate the productive resources he uses

Citizens and businesses of a country, through supply and demand.

Explanation:

A market economy is an economic system in which economic decisions and pricing of goods and services are guided solely by the total interaction of citizens and businesses in a country and there is little government intervention or central planning. This is the opposite of a centrally planned economy, in which government decisions handle many aspects of a country's economic activity.

Labor market economies in the assumption that market forces, such as supply and demand, are the best determinants of what is right for the welfare of the nation. These economies rarely participate in government interventions such as pricing, licensing fees and industry subsidizations.

Prices on Production and Consumption

Explanation:

In a market economy (such as that of the United States), price is the distribution method. Producers charge a price to cover their costs and, they hope, earn profits. Consumers pay prices for goods and services. Prices are expressed in money, which facilitates these exchanges. Prices also serve as signals between producers and consumers. All of this is true...in a market economy.

answer; institution;

answer(d) all of the choices are correct;