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

Author Question: Which of the following is false of perfectly competitive firms? a. As new firms enter an industry ... (Read 157 times)

lilldybug07

  • Hero Member
  • *****
  • Posts: 546
on: Jun 30, 2018
Which of the following is false of perfectly competitive firms?
 a. As new firms enter an industry where sellers are earning economic profits, the result will include a reduction in the equilibrium price.
  b. In a constant-cost industry, the industry does not use inputs in sufficient quantities to affect input prices.
 c. In a constant-cost competitive industry, the long-run effect of an increase in demand is an increase in industry output but no change in the industry price.
  d. All are true.

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. Which of the following statements is true?
 a. Brazil has a comparative advantage in producing coffee.
  b. Brazil has a comparative advantage in producing both coffee and sugar.
  c. Chile has a comparative advantage in producing both coffee and sugar.
  d. Neither Chile nor Brazil has a comparative advantage in producing coffee.
  e. Brazil has a comparative advantage in producing sugar.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

miss.ashley

  • Sr. Member
  • ****
  • Posts: 371
Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

e


lilldybug07

  • Hero Member
  • *****
  • Posts: 546
Reply #2 on: Jun 30, 2018
Correct answers!


miss.ashley

  • Sr. Member
  • ****
  • Posts: 371
Reply #3 on: Jun 30, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Did you know?

Normal urine is sterile. It contains fluids, salts, and waste products. It is free of bacteria, viruses, and fungi.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Lumbar puncture. Abbreviated LP, the lumbar puncture is a common procedure that withdraws cerebrospi Lumbar puncture. Abbreviated LP, the lumbar puncture is a common procedure that withdraws cerebrospi
Tubal ligation. To minimize the size of the incisions necessary, laparoscopic surgery may be used to Tubal ligation. To minimize the size of the incisions necessary, laparoscopic surgery may be used to
Plasma insulin binds to receptors on target cells to enter the cells, which starts actions that lead ... Plasma insulin binds to receptors on target cells to enter the cells, which starts actions that lead ...
A substrate and its competitive inhibitor A substrate and its competitive inhibitor
Competitive firms and maximization Competitive firms and maximization
A variety of organic compounds from food can enter the reactions of aerobic respiration. A variety of organic compounds from food can enter the reactions of aerobic respiration.
Video: Carbon fixing adaptations Animation

For a complete list of videos, visit our video library