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.
Correct Answer:
Verified
Correct Answer:
Verified
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