In a market economy every resource will tend to be paid, Ask an Expert

Economics

Q. Analayze the following two statements. Are they both true? Are they inconsistent with each other? Explain.

(1) "Firms will hire a resource only if they can make money by doing so."

(2) "In a market economy, each resource will tend to be paid according to its marginal product. Highly productive resources will command high prices, whereas less productive resources will command lower prices.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9224867

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