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Which of the Following Statements About Equilibrium Factor-Price Differentials Is

Question 28

Multiple Choice

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


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

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