Are the following statements both correct? Are they inconsistent with each other? Explain. a. Firms will hire

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Are the following statements both correct? Are they inconsistent with each other? Explain.

a. “Firms will hire a resource only if they can make money by doing so.”

b. “In a market economy, each resource will tend to be paid according to its marginal product. Highly productive resources will command high prices, whereas less productive resources will command lower prices.”

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Microeconomics Private And Public Choice

ISBN: 9781305506893

16th Edition

Authors: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

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