Which of the following statements describes the way our home
Equilibrium reflects the concepts of competitive markets?
I.The opportunity cost of each good is the inverse of the ratio of labor
Productivity.
II.Prices of each good reflect opportunity cost.
III.Wages are equal and reflect the value of the marginal product of
Labor (MPL × P) for each good.
A)I
B)II
C)III
D)I, II, and III

Question

Quizplus · Accepted Answer

In competitive markets, opportunity costs are reflected in prices, and wages equal the value of the marginal product of labor. All statements I, II, and III describe these concepts accurately.

Which of the Following Statements Describes the Way Our Home