Final answer:
Price for professional services like those provided by consultants, lawyers, physicians, and accountants acts as both a fee for service and a signal of quality. The term 'unit of account' is used to describe how price simplifies the value comparison, aiding in financial decisions.
Step-by-step explanation:
Consultants, lawyers, physicians, and accountants often refer to the price of their services in terms of fees or billable rates. In a business context, price acts as a signal of quality, particularly when information is imperfect. For instance, a consultant may charge a significant hourly fee based on their expertise and reputation, implying that their services are of high quality. Similarly, a lawyer's hourly rate can influence perceptions of competency and prestige. In healthcare, a physician's consultation fee can also be interpreted as a reflection of their skill and experience. Accountants, by setting a fee for services like tax return preparation, use price as a unit of account, helping clients understand the value of services rendered in monetary terms.
Furthermore, money as a unit of account functions as a common denominator for value comparison, simplifying trade-offs in financial decision-making. Essentially, price in professional services is not just a monetary amount, but can also be an indicator of the value, reputation, and expected quality of service one might receive.