The following estimation methods should not be used to test for randomization when Xi, is binary:
A) linear probability model (OLS) with homoskedasticity-only standard errors.
B) probit.
C) logit.
D) linear probability model (OLS) with heteroskedasticity-robust standard errors.
Ans: A) linear probability model (OLS) with homoskedasticity-only standard errors.
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For a monopoly able to perfectly price discriminate, the marginal revenue curve coincides with the demand curve
Indicate whether the statement is true or false
A monopolistic firm
A) will never sell a product whose demand is inelastic at the quantity sold. B) can sell as much as it wants for any price it determines in the market. C) cannot determine the price, which is determined by consumer demand. D) cannot sell additional quantity unless it raises the price on each unit. E) will always earn a profit in the long run.
Refer to the figure below. In this game, how many dominant strategies does Player A have?
A. 0 B. 4 C. 2 D. 1
Sam quits his job as an airline pilot and opens his own pilot training school. He was earning $40,000 as a pilot. He withdraws $10,000 from his savings where he was earning 6 percent interest and uses the money in his new business. He uses a building he owns as a hanger and could rent it out for $5,000 per year. He rents a computer for $1,200, buys office supplies for $500, rents an airplane for
$6,000 . pays $1,300 for fuel and maintenance, and hires one worker for $30,000 . Sam's total revenue from pilot training classes equaled $90,400 . Sam's implicit costs for this year are equal to: a. $84,400. b. $39,000. c. $55,000. d. $45,600. e. $40,000.