In case of endogenous sample selection, OLS is unbiased but consistent.
Answer the following statement true (T) or false (F)
False
Rationale: FEEDBACK: In case of endogenous sample selection, OLS is biased and inconsistent.
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Which of the following conditions can help prolong the life of a cartel?
A) There are only a few firms in the market and they all belong to the cartel. B) There are many firms in the market that are not members of the cartel. C) It is difficult to know what price any cartel member is actually charging. D) The cartel has no ability to punish members who cheat on the cartel.
A manufacturer produces two types of computer software, Word processing (W) and Spreadsheet (S), which is offered to two different retail outlets (#1 and #2). The following table shows the maximum price each retail outlet is willing to pay for each individual software product. Product W Product S Retail #1 $170 $105 Retail #2 $95 $135 What is the optimal pricing strategy that will maximize
revenue for the manufacturer, given the maximum the retail outlets are willing to pay? a. Bundle both products (W and S) and sell them at $230. b. Price product W at $170 and Product S at $135. c. Price product W at $170 and Product S at $170. d. Price product W at $95 and Product S at $105. e. Bundle both products (W and S) and sell them at $275.
Implicit costs will be zero in the long run
Indicate whether the statement is true or false
Under the assumption of rational expectations, people's expectations about the economy are an important determinant of
A. the long-run aggregate supply curve. B. the short-run aggregate supply curve. C. the short-run aggregate demand curve. D. the long-run aggregate demand curve.