Which of the following statements about equilibrium factor- price differentials is correct? They
A)may be caused by differences in the intrinsic qualities of factors.
B)tend to be self- eliminating.
C)are unrelated to differences in non- monetary benefits.
D)are unrelated to acquired differences in factors.
E)will be eliminated when the allocation of resources is in long- run equilibrium.

Question

Quizplus · Accepted Answer

Equilibrium factor-price differentials may be caused by differences in the intrinsic qualities of factors, such as skills or abilities, which can lead to variations in wages or returns.

Which of the Following Statements About Equilibrium Factor- Price Differentials