Short-run cost functions are estimated using
A) time-series regression analysis.
B) cross-sectional regression analysis.
C) nominal cost data.
D) present value cost data.
A
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Are the short-run and long-run average cost curves U-shaped for the same reason? Explain
What will be an ideal response?
Contractionary monetary policy to prevent real GDP from rising above potential real GDP would cause the inflation rate to be ________ and real GDP to be ________
A) higher; higher B) higher; lower C) lower; lower D) lower; higher
Consumers maximize total utility within their budget constraint by
A) spending the same dollar amount for each good. B) buying the cheapest goods they can find. C) buying whatever they like the best. D) buying the goods with the largest marginal utility per dollar spent.
A risk premium is
a. the difference between the earnings of a low risk asset and a high risk asset b. premium paid to a security holder to compensate him for bearing a higher risk c. both A&B d. none of the above