Fixed costs are best defined as

A. costs that will not vary with the firm's output level over some period of time.
B. costs that are paid on a yearly basis rather than a weekly or monthly basis.
C. costs of inputs that cannot be moved, such as real estate.
D. costs that will last as long as the firm exists.


A. costs that will not vary with the firm's output level over some period of time.

Economics

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If total profit is maximized, then marginal cost must equal marginal revenue.

Answer the following statement true (T) or false (F)

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If the instruments are not exogenous,

A) you cannot perform the first stage of TSLS. B) then, in order to conduct proper inference, it is essential that you use heteroskedasticity-robust standard errors. C) your model becomes overidentified. D) then TSLS is inconsistent.

Economics

Exhibit 7-9 Cost schedule for firm X OutputQuantity Total FixedCost Total VariableCost 0 $100 $    0 1   100     50 2   100     84 3   100   108 4   100   127 5   100   150 As shown in Exhibit 7-9, the total cost of producing 4 units is:

A. zero. B. $227. C. $250. D. $100.

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One feature of pure monopoly is that the demand curve:

A. Is vertical B. Is horizontal C. Slopes upward D. Slopes downward

Economics