This topic contains a solution. Click here to go to the answer

Author Question: What would be the long-run equilibrium result of output expansion in a decreasing-cost ... (Read 100 times)

Haya94

  • Hero Member
  • *****
  • Posts: 558
What would be the long-run equilibrium result of output expansion in a decreasing-cost industry?

Question 2

The original comparative advantage model that used the relative abundance of factors of production to explain comparative advantage assumed that countries:
 a. employed all four factors of production; land, labor, capital, and entrepreneurship.
  b. employed only two factors of production; labor and capital.
  c. employed only two factors of production; land and entrepreneurial ability.
  d. worked with a fixed capital stock.
  e. were free to vary their employment of only one factor of production; labor.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

brittanywood

  • Sr. Member
  • ****
  • Posts: 355
Answer to Question 1

An expansion in the output of a decreasing-cost industry can lead to a reduction in input costs and shift the MC and ATC curves downward, and the market price falls. Effectively, a firm experiences lower cost as an industry expands. The new long-run market equilibrium has more output at a lower price. The long-run supply curve is downward sloping.

Answer to Question 2

b




Haya94

  • Member
  • Posts: 558
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)


ghepp

  • Member
  • Posts: 361
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

As of mid-2016, 18.2 million people were receiving advanced retroviral therapy (ART) worldwide. This represents between 43–50% of the 34–39.8 million people living with HIV.

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

For a complete list of videos, visit our video library