Which of the Following Statements About Equilibrium Factor- Price Differentials

question 84

Multiple Choice

Which of the following statements about equilibrium factor- price differentials is correct? They

• A)may be caused by differences in the intrinsic qualities of factors.
• B)tend to be self- eliminating.
• C)are unrelated to differences in non- monetary benefits.
• D)are unrelated to acquired differences in factors.
• E)will be eliminated when the allocation of resources is in long- run equilibrium.

---

Definitions:

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider.

Good Or Service

Any tangible product (good) or intangible offering (service) that can be sold or provided in a market to satisfy the demand of a customer.

Marginal Revenue

The additional income received from selling one more unit of a product or service.

Marginal Cost

The increase in total cost that arises from producing one additional unit of a good or service.