Author Question: Which of the following is false about the long run? a. The long-run equilibrium output for a firm ... (Read 105 times)

newyorker26

  • Hero Member
  • *****
  • Posts: 536
Which of the following is false about the long run?
 a. The long-run equilibrium output for a firm in perfect competition occurs at the lowest point on the average total cost curve.
  b. The shape of the long-run supply curve depends on the extent to which input costs change when there is entry or exit of firms in the industry.
  c. In a constant-cost industry, the prices of inputs do not change as output is expanded.
 d. In an increasing-cost industry, the cost curves of the individual firms rise as the total output of the industry decreases.

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 an absolute advantage in producing only coffee.
  b. Brazil has an absolute advantage in producing only sugar.
  c. Chile has an absolute advantage in the production of both coffee and sugar.
  d. Chile has an absolute advantage in producing only coffee.
  e. Brazil has an absolute advantage in the production of both coffee and sugar.



ecabral0

  • Sr. Member
  • ****
  • Posts: 310
Answer to Question 1

d

Answer to Question 2

c



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

Did you know?

On average, the stomach produces 2 L of hydrochloric acid per day.

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

For a complete list of videos, visit our video library