A temporary price differential in resource markets is _____
A)caused by inherent differences in nonmonetary aspects of a job.
B)caused by a failure of firms to maximize profits.
C)eliminated by resources moving from lower-valued to higher-valued uses.
D)caused by governments increasing the minimum wages of workers.
E)eliminated when resources earn an excess of their opportunity costs.

Question

Quizplus · Accepted Answer

Temporary price differentials in resource markets are eliminated by resources moving from lower-valued to higher-valued uses. This is because firms will reallocate resources to the higher-valued uses, which will eventually equalize demand and supply for those specific resources, removing the price differential.

A Temporary Price Differential in Resource Markets Is _____