In a market economy,the real,or inflation-adjusted,price of a resource measures its

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The real price of a resource is determined by its relative scarcity in the market. This is because as the availability of a resource decreases, its price increases. In a market economy, prices help to allocate scarce resources efficiently by signaling where resources are most needed. Therefore, the real price of a resource measures its relative scarcity, not its productivity or efficiency. Contribution to revenue is not necessarily related to the price of a resource.

In a Market Economy,the Real,or Inflation-Adjusted,price of a Resource Measures