Because it takes many years before newly planted orange trees bear fruit, the supply curve in the short run is almost vertical. in the long run, farmers can decide whether to plant oranges on their land, to plant something else, or to sell their land altogether. therefore, the long-run supply of oranges is much more price sensitive than the short-run supply of oranges.

assuming that the long-run demand for oranges is the same as the short-run demand, you would expect a binding price ceiling to result in a is the long run than in the short run.

Suppose life expectancy in years (l) is a function of two inputs, health expenditures (h) and nutrition expenditures (n) in hundreds of dollars per year. the production function is upper l equals ch superscript 0.40 baseline upper n superscript 0.60l=ch0.40n0.60. beginning with c = 1, a health input of $400400 per year (hequals=44) and a nutrition input of $400400 per year (nequals=44), show that the marginal product of health expenditures and the marginal product of nutrition expenditures are both decreasing. the marginal product of health expenditures when h goes from 44 to 55 is nothing, and the marginal product of health when h goes from 66 to 77 is nothing. (round your answers to three decimal places.)