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 147 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?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

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
First-pass effect: (a) drugs are absorbed; (b) drugs enter hepatic portal circulation and go directl First-pass effect: (a) drugs are absorbed; (b) drugs enter hepatic portal circulation and go directl
The steps in the hearing process. (1) Sound waves enter the outer ear and travel through the ear ... The steps in the hearing process. (1) Sound waves enter the outer ear and travel through the ear ...
Kyoto Protocol encourages industry to innovate and reduce the level of emissions Kyoto Protocol encourages industry to innovate and reduce the level of emissions
Industry is responsible for 21% of global greenhouse gas emissions Industry is responsible for 21% of global greenhouse gas emissions
Economic objectives of firms Economic objectives of firms
Video: Flexor reflex & Crossed extensor reflex

For a complete list of videos, visit our video library