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

Question

Quizplus · Accepted Answer

Permanent resource price differentials refer to situations where the difference in prices between resources in different markets does not result in the movement of resources from one market to another. This could be due to factors such as government regulations, transaction costs, or other barriers to entry that prevent the free flow of resources. Temporary, conditional, and selective resource price differentials all imply some sort of eventual adjustment or reallocation of resources. Market resource price differentials are not a commonly used term.

Resource Price Differentials That Do Not Trigger the Reallocation of Resources