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​A Guarded Barbed Wire Fence Separates East and West Bovinia

Question 41

Multiple Choice

​A guarded barbed wire fence separates East and West Bovinia. Soccer players are paid twice as much in West Bovinia than in East Bovinia. This is an example of _____.


A) an inelastic supply of labor
B) a temporary resource price differential
C) a permanent resource price differential
D) diminishing marginal revenue product
E) increasing marginal revenue product

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