The assumption of perfect mobility of resources in perfectly competitive input markets implies that
A)all units of the same input will sell for the same price
B)the resources will be identical in all markets
C)unemployment rates may differ in different parts of the country
D)there will always be enough firms to purchase all available resources

Question

Quizplus · Accepted Answer

Perfect mobility of resources implies that there are no barriers to entry or exit in input markets, and all firms have access to the same pool of resources. Therefore, all units of the same input will sell for the same price, as there is perfect competition among buyers for the same resource. Choices B, C, and D are incorrect because they are unrelated to the assumption of perfect mobility of resources.

The Assumption of Perfect Mobility of Resources in Perfectly Competitive