Resource price differentials that do not trigger the reallocation of resources are known as
A)temporary differentials
B)market differentials
C)conditional differentials
D)permanent differentials
E)sustainable differentials

Question

Quizplus · Accepted Answer

Permanent differentials are those price differences that do not lead to the movement of resources from one market to another in search of higher returns. They occur due to factors such as geographical location, climate, or natural resources, making it difficult for resources to move to a more profitable industry.

Resource Price Differentials That Do Not Trigger the Reallocation of Resources