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If an Industry Is Highly Profitable, It Is an Indication

Question 53

Multiple Choice

If an industry is highly profitable, it is an indication that:


A) the marginal value of resources is high, and more resources need to flow into the industry.
B) the marginal value of resources is low, and resources need to flow out of the industry.
C) labor and, to a limited extent, capital are being exploited.
D) firms are using high-value inputs to create low-value outputs.

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