Which of the Following Statements Describes the Way the Pre-Trade

question 1

Multiple Choice

Which of the following statements describes the way the pre-trade home equilibrium reflects the concepts of competitive markets?

• A) The opportunity cost of good 1 is the ratio of labor productivity of good 1 to good 2
• B) Prices of each good reflect their opportunity cost.
• C) Wages are not equal for each good
• D) The value of the marginal product of labor (MPL × P) differs for each good.

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Definitions:

Felony

A serious crime, typically one punishable by imprisonment for more than one year or by death.

Negligence

A failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, leading to causing harm or damage.

Battery

An intentional unconsented physical contact or use of force against another person, causing harm or offense.

Self-Defense

The right to defend oneself or others against physical harm or death through the use of reasonable force.