« previous next »

Author Question: Which of the following best applies to the distinction between the long run and the short run? A) ... (Read 26 times)

Shelles

  • Hero Member
  • *****
  • Posts: 582
on: Jul 1, 2018
Which of the following best applies to the distinction between the long run and the short run?
 
  A) The short run is a period of approximately 1-6 months while the long run is any time frame which is longer.
  B) In the short run, only new firms may enter, while in the long-run firms may either enter or exit the market.
  C) The rationing function of price is a short-run phenomenon whereas the guiding function is a long-run phenomenon.
  D) All of the above statements are correct.

Question 2

Consider a society consisting of just a farmer and a tailor. The farmer has 10 units of food but no clothing. The tailor has 40 units of clothing but no food. Suppose each has the utility function U = F  C. The price of clothing is always 1.
 
  What is the competitive equilibrium price for food? A) 5
  B) 4
  C) 3
  D) 2


millet

  • Sr. Member
  • ****
  • Posts: 354
Reply #1 on: Jul 1, 2018
Answer to Question 1

C

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

Did you know?

Oxytocin is recommended only for pregnancies that have a medical reason for inducing labor (such as eclampsia) and is not recommended for elective procedures or for making the birthing process more convenient.

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

Did you know?

About 3% of all pregnant women will give birth to twins, which is an increase in rate of nearly 60% since the early 1980s.

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

The U.S. Long-Term Ecological Research (LTER) network. The U.S. Long-Term Ecological Research (LTER) network.
In 2013, Americans learned that the federal government massively surveys their phone calls and e-mai In 2013, Americans learned that the federal government massively surveys their phone calls and e-mai
Homeschooling has come a long way. These children are performing in a musical at the annual ... Homeschooling has come a long way. These children are performing in a musical at the annual ...
Major Categories of Long-Term Memory Major Categories of Long-Term Memory
These findings are from Colby and Kohlberg's long-term longitudinal study These findings are from Colby and Kohlberg's long-term longitudinal study
If you are able to earn 6.2% compounded semi-annually in an account, how long will it take for ... If you are able to earn 6.2% compounded semi-annually in an account, how long will it take for ...
Video: Osteoporosis

For a complete list of videos, visit our video library