Which of the following is not one of the strengths of the Cobb-Douglas production function?
A) Both marginal product and returns to scale can be estimated from it.
B) It can be converted into a linear function for ease of calculation.
C) It shows a production function passing through increasing returns to constant returns and then to decreasing returns.
D) The sum of the exponents indicates whether returns to scale are increasing, constant or decreasing.
C
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You believe that a corporation's dividends will grow 5% on average into the foreseeable future. If the company's last dividend payment was $5 what should be the current price of the stock assuming a 12% required return?
What will be an ideal response?
Which of the following is NOT true regarding monopoly?
A) Monopoly is the sole producer in the market. B) Monopoly price is determined from the demand curve. C) Monopolist can charge as high a price as it likes. D) Monopoly demand curve is downward sloping.
Which of the following is an unconventional monetary policy?
a. lending to banks in unprecedented volume b. lending to companies other than banks c. reducing the federal funds rate to zero d. All of these are unconventional monetary policies.
An aggregate supply (AS) curve depicts the relationship between
What will be an ideal response?