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

Author Question: In a perfectly competitive market, in response to a permanent decrease in demand: a. the short run ... (Read 68 times)

shenderson6

  • Hero Member
  • *****
  • Posts: 573
on: Jun 30, 2018
In a perfectly competitive market, in response to a permanent decrease in demand:
 a. the short run equilibrium price will be higher than the eventual long run equilibrium price.
 b. the short run equilibrium price will be lower than the eventual long run equilibrium price.
 c. the short run equilibrium price will be the same as than the eventual long run equilibrium price.
 d. we cannot know whether the short run equilibrium price will be above, below or equal to the eventual long run equilibrium price.

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. Calculate the opportunity cost of producing sugar in Brazil.
 a. Half a pound of coffee
  b. 4 pounds of coffee
  c. 1 pound of coffee
  d. 2 pounds of coffee
  e. One and a half pounds of coffee


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

fauacakatahaias

  • Sr. Member
  • ****
  • Posts: 353
Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

d


shenderson6

  • Member
  • Posts: 573
Reply 2 on: Jun 30, 2018
Wow, this really help

Liamb2179

  • Member
  • Posts: 365
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

The response of hair cells to mechanical stimulation. The response of hair cells to mechanical stimulation.
Steiner taste response experiments on three newborns Steiner taste response experiments on three newborns
Excessive video gaming decrease social and physical development in a child Excessive video gaming decrease social and physical development in a child
Sympathetic Nervous System's Flight or Fight Response Sympathetic Nervous System's Flight or Fight Response
Pathophysiologic response to anaphylaxis Pathophysiologic response to anaphylaxis
The response of the lac operon in the presence of lactose in a cell bearing the IS mutation The response of the lac operon in the presence of lactose in a cell bearing the IS mutation
Video: Cardiac conductile cells

For a complete list of videos, visit our video library