In any given market, prices are determined by

Refer to Scenario 7.3. Which of the following combinations of inputs is on the isoquant to produce 400 units of output?

A) L = 0, K = 400 B) L = 400, K = 0 C) L = 100, K = 100 D) all of the above E) A and B, but not C

Long-term contracts become longer:

A. when spot markets work well. B. when the exchange environment is more complex. C. when marginal costs are declining. D. when specialized investment becomes more important.