A potential problem with cross-section cost data is that
A. at least one input is fixed over time.
B. different firms face different input prices.
C. nominal cost data include the effect of inflation.
D. both a and b
E. none of the above
Answer: B
You might also like to view...
A major principle of economics is that people respond to incentives
Indicate whether the statement is true or false
If a monopolistically competitive seller's marginal cost is $3.56, the firm will not change its output if
A) its marginal revenue is less than $3.56. B) its marginal revenue is equal to $3.56. C) its marginal revenue is more than $3.56. D) its average total cost is equal to $3.56. E) Both answers B and D are correct.
Refer to Figure 9-2. Without the tariff in place, the United States produces
A) 9 million pounds of rice. B) 15 million pounds of rice. C) 31 million pounds of rice. D) 42 million pounds of rice.
What three conditions must hold for a firm to successfully price discriminate?
What will be an ideal response?