Permanent Differentials in Resource Prices Will Cause _____

question 41

Multiple Choice

Permanent differentials in resource prices will cause _____

• A)a change in the supply of resources.
• B)the allocation of fewer resources to lower-paid uses.
• C)the equalization of payments for the same resource in different uses.
• D)no change in the allocation of resources.
• E)the allocation of more resources to higher-paid uses.

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Definitions:

Herfindahl Index

A measure of market concentration used to determine the level of competition within an industry, calculated by summing the squares of the market shares of all firms in the industry.

Market Power

The ability of a firm or group of firms to influence or control the prices and total output in a market, often due to limited competition or holding a dominant position.

Price Competition

A market situation where businesses attempt to outdo competitors by offering goods or services at lower prices.

Product Differentiation

The method of differentiating a product or service from competitors, aiming to make it more appealing to a specific target audience.