Question

8. A plant in a small town closes, leaving hundreds of people unemployed. There are jobs

available at a similar plant in another state, but many of the unemployed workers are unwilling
to move or cannot afford to move. An economist might use this example to
A. describe what happens when there is not enough competition
B. define resource immobility
C. define a public good
D. explain an externality
Education. Perm ssion is granted to reproduc

Answer 1

The correct option is B. An economist might use this example to define resource immobility.

Step-by-step explanation:

Resource immobility can be described as a resource that happens to be of no competitive advantage. The resource is easy to obtain but competitors do not consider using it.

For example, in the scenario discussed in the question above, a similar plant is available in another city but the unemployed people do not want to avail that facility. The workers might compete for working in the closed plant but there is no such competition to work in the plant that is out of state.