How does the idea of efficient markets influence the long-run ...

[DyllonKazuo]

How does the idea of efficient markets influence the long-run market adjustment mechanism?
 
  What will be an ideal response?

Question 2

Refer to Figure 2-3. Sergio Vignetto raises cattle and llamas on his land. His land is equally suitable for raising either animal. Which of the graphs in Figure 2-3 represent his production possibilities frontier?
 
  A) Graph A
  B) Graph B
  C) Graph C
  D) either Graph A or Graph C
  E) either Graph B or Graph C

[wergv]

Answer to Question 1

Investment capital flows toward profit opportunities. In the long run this leads to entry, exit, expansion, and contraction in an industry.

Answer to Question 2

A

[DyllonKazuo]

Excellent

[abro1885]

Great answer, keep it coming