This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which of the following is false of perfectly competitive firms? a. As new firms enter an industry ... (Read 79 times)

lilldybug07

  • Hero Member
  • *****
  • Posts: 546
on: Jun 30, 2018
Which of the following is false of perfectly competitive firms?
 a. As new firms enter an industry where sellers are earning economic profits, the result will include a reduction in the equilibrium price.
  b. In a constant-cost industry, the industry does not use inputs in sufficient quantities to affect input prices.
 c. In a constant-cost competitive industry, the long-run effect of an increase in demand is an increase in industry output but no change in the industry price.
  d. All are true.

Question 2

Suppose labor productivity differences are the only determinants of comparative advantage, and Brazil and Chile both produce only coffee and sugar. In Chile, either 5 units of coffee or 2 units of sugar can be produced in one day. In Brazil, a day of labor produces either 2 units of coffee or 1 unit of sugar. Which of the following statements is true?
 a. Brazil has a comparative advantage in producing coffee.
  b. Brazil has a comparative advantage in producing both coffee and sugar.
  c. Chile has a comparative advantage in producing both coffee and sugar.
  d. Neither Chile nor Brazil has a comparative advantage in producing coffee.
  e. Brazil has a comparative advantage in producing sugar.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

miss.ashley

  • Sr. Member
  • ****
  • Posts: 371
Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

e


lilldybug07

  • Hero Member
  • *****
  • Posts: 546
Reply #2 on: Jun 30, 2018
Correct answers!


miss.ashley

  • Sr. Member
  • ****
  • Posts: 371
Reply #3 on: Jun 30, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

According to the CDC, approximately 31.7% of the U.S. population has high low-density lipoprotein (LDL) or "bad cholesterol" levels.

Did you know?

There are 60,000 miles of blood vessels in every adult human.

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

Nearly 31 million adults in America have a total cholesterol level that is more than 240 mg per dL.

False killer whales False killer whales
A 1998 false-colour near-infrared image of Uranus showing cloud bands, rings, and moons obtained by A 1998 false-colour near-infrared image of Uranus showing cloud bands, rings, and moons obtained by
A passenger train crosses Stony Creek Bridge in the Rocky Mountains in 1878. Railroads were importan A passenger train crosses Stony Creek Bridge in the Rocky Mountains in 1878. Railroads were importan
Early in the twentieth century, when malnutrition was common, companies such as this one advertised Early in the twentieth century, when malnutrition was common, companies such as this one advertised
Wages and Machines in the Textile Industry, 1910 Wages and Machines in the Textile Industry, 1910
Midsagittal section indicating locations of true and false pelves Midsagittal section indicating locations of true and false pelves
Video: Spinal Cord Injury Animation

For a complete list of videos, visit our video library