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

Question

Quizplus · Accepted Answer

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

Which of the Following Statements About Equilibrium Factor-Price Differentials Is