Normative analysis involves value judgments

Indicate whether the statement is true or false

TRUE

Economics

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The profit-maximizing combination of resources in a perfectly competitive situation occurs at the point at which

A) MRP of labor = price of labor (wage rate). B) MRP of land = price of land (rental rate per unit). C) MRP of capital = price of capital (cost per unit of service). D) All of the above are correct.

Economics

One barrier to entry into a monopoly market is:

A. the ownership of a key resource or input. B. too many competitors already in the market. C. high input costs. D. few buyers.

Economics