Explain why the long-run total cost curve, not the short-run total cost curve, shows the lowest cost of producing any level of output. Is there an exception?
What will be an ideal response?
In the long run, all costs are variable so the firm can select the least-cost mix of all inputs to produce any given quantity. The exception would be at minimum long-run cost where min. LR and min. SR costs are equal.
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Using n to represent price elasticity of demand, a simple monopolist will find that its marginal revenue at any point along its demand curve is equal to price at that point multiplied by
a. (1 - 1/|n|) b. 1/|n| c. |n| d. |n|*MC
Diversification cannot reduce market risk
a. True b. False Indicate whether the statement is true or false
The estimator obtained through regression on quasi-demeaned data is called the _____.
A. random effects estimator B. fixed effects estimator C. hetroskedasticity-robust OLS estimator D. instrumental variables estimator
In Figure 30.1, the shift in the labor supply curve from S1 to S2 means that
A. The marginal utility of labor relative to leisure has increased. B. The demand for labor has increased, and this encourages more labor force participation. C. The marginal utility of labor has decreased. D. Workers are being paid higher wage rates, given their taste for work.