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 56 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

nyrave

  • Member
  • Posts: 344
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

The first monoclonal antibodies were made exclusively from mouse cells. Some are now fully human, which means they are likely to be safer and may be more effective than older monoclonal antibodies.

Did you know?

For pediatric patients, intravenous fluids are the most commonly cited products involved in medication errors that are reported to the USP.

Did you know?

About one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

The rate of evolution in short­ and long­lived plants The rate of evolution in short­ and long­lived plants
Competitive inhibition Competitive inhibition
Walter Thompson saw his assets evaporate during the stock market collapse in 1929. Desperate for ... Walter Thompson saw his assets evaporate during the stock market collapse in 1929. Desperate for ...
An example of a cover letter sent in response to a classified ad. An example of a cover letter sent in response to a classified ad.
The original Supply and Demand graph The original Supply and Demand graph
Suppose a country imports televisions. The country's supply and demand curves are shown in ... Suppose a country imports televisions. The country's supply and demand curves are shown in ...
Video: Structures that affect circulation - kidneys and blood volume and skeletal muscle pumping

For a complete list of videos, visit our video library