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Which of the following is true of Merton's model:
Resources Employed
Refers to the allocation and utilization of resources such as labor, capital, and materials to produce goods and services.
Output of Industry
The total amount of goods and services produced by an industry or sector within a specific period, often used to gauge economic health and productivity.
Economic Profit
The difference between total revenues and total costs, taking both explicit and implicit costs into account, indicating the additional income over the opportunity cost of capital.
Industry Z
An unspecified sector of the economy, used as a placeholder to discuss economic concepts without specifying an industry.
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