Suppose a firm uses workers and office space to produce output. The firm is locked into a year-long lease on its office space, but it can easily vary the number of employee-hours it uses each day. The accompanying table describes the relationship between the number of employee-hours the firm uses each day and the firm's daily output. Each unit of output sells for $2, the hourly wage rate is $14, and the rent on the office space is $50 per day.Employee-Hours Per DayOutput Per Day0014048091201516023200 When the firm uses 9 employee-hours per day, its total variable cost each day is:
A. $56.
B. $84.
C. $30.
D. $126.
Answer: D
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If the errors are heteroskedastic, then
A) the OLS estimator is still BLUE as long as the regressors are nonrandom. B) the usual formula cannot be used for the OLS estimator. C) your model becomes overidentified. D) the OLS estimator is not BLUE.
Which of the following is FALSE?
a. Maximizing division profits can sometimes lead to reducing company-wide profits b. Managers of profit centers are never given any discretion in their decision making c. Profit centers usually largely run themselves d. A manager being rewarded on division revenues has the most incentive to make good decisions for his division
A GDP price index of 100 for a year implies that: a. there has been no inflation during the year
b. the price level is three times what it was in the base year. c. the price level is one hundred times what it was in the base year. d. the price level is double what it was in the base year. e. the inflation rate has been 100 percent per year since the base year.
The long-run aggregate supply curve is:
What will be an ideal response?