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5. Are the following statements both correct? Are they inconsistent with each other? Elaborate. a. Firms will hire a resource only if they can make
5. Are the following statements both correct? Are they inconsistent with each other? Elaborate.
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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