When estimating a short-run production function of the form Q = AL3 + BL2, it is necessary to specify in the computer routine that
A. B > 0.
B. A < 0.
C. the intercept term is forced to equal zero.
D. a and b
E. all of the above
Answer: C
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"A market is said to be perfectly competitive when consumers can tell that some products are of better quality than others." Do you agree or disagree? Why?
What will be an ideal response?
Which of the following is TRUE?
a. Discount retailers can defeat price discrimination by the manufacturers through arbitrage b. Arbitrage is not an effective way for retailers to defeat price discrimination by manufacturers c. Retailers are incapable of defeating upstream price discrimination once the manufacturer sets prices d. "High End" retailers can defeat price discrimination by the manufacturers through arbitrage
Sellers in a perfectly competitive market make special arrangements to deal with particular customers and stand to lose value if their relationship with those customers ends
Indicate whether the statement is true or false
Which of the following words best reflects the initial attitude of less-developed countries toward GATT?
a. grateful, because it provided them with subsidies b. proud, because it recognized the special status they had in world trade c. unknowing, because it started out as a secret organization d. annoyed, because they saw it as a rich man's club e. terrified, because it seemed as if it was designed to reimpose colonialism