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Describe the different methods of allocation scarce resources

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Describe the different methods of allocation scarce resources

Expert Solution

Step 1

Resources mean land, labor, capital, and entrepreneurs. The fixed inputs are land and capital which remains fixed in the short run and the variable input are labor which remains variable in the short as well as in long run.

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