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Economics 14th Edition by James Gwartney,Richard Stroup, Russell Sobel ,David Macpherson
Edition 14ISBN: 978-1133561644Economics 14th Edition by James Gwartney,Richard Stroup, Russell Sobel ,David Macpherson
Edition 14ISBN: 978-1133561644 Exercise 8
Are the following statements both correct? Are they inconsistent with each other? Explain.
a. "Firms will hire a resource only if they can make money by doing so."
b. "In a market economy, each resource will tend to be paid according to its marginal product. Highly productive resources will command high prices, whereas less productive resources will command lower prices."
a. "Firms will hire a resource only if they can make money by doing so."
b. "In a market economy, each resource will tend to be paid according to its marginal product. Highly productive resources will command high prices, whereas less productive resources will command lower prices."
Explanation
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a) Firms employ resources if they feel t...
Economics 14th Edition by James Gwartney,Richard Stroup, Russell Sobel ,David Macpherson
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