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Author Question: If input prices for perfectly competitive firms increase as the output of its industry expands: a. ... (Read 204 times)

washai

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on: Jun 30, 2018
If input prices for perfectly competitive firms increase as the output of its industry expands:
 a. their short run average cost curves will shift up as the industry expands.
 b. after a permanent increase in demand, the long run equilibrium price will be higher than the original price.
  c. after a permanent increase in demand, the short run equilibrium price will be higher than the eventual long run equilibrium price.
  d. all of the above will be true.

Question 2

The limits of the terms of trade are determined by the:
 a. distribution costs in each country.
  b. stock of foreign exchange in each country.
  c. average total costs of producing the commodities in each country.
  d. opportunity costs in each country.
  e. currency exchange rate between the trading partners.


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flexer1n1

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Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

d


washai

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Reply #2 on: Jun 30, 2018
Correct answers!


flexer1n1

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Reply #3 on: Jun 30, 2018
Great! Please up vote :D


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