How would a firm determine its optimal method of production?
What will be an ideal response?
The optimal method of production is the production method that minimizes cost.
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Depository institutions must
A) keep a certain percentage of their deposits as reserves. B) use and pay for the services of the Federal Reserve System. C) turn over a percentage of their profits to the Federal Reserve System as payment for services provided by the Fed. D) set their interest rates according to schedules established by the Federal Reserve System.
(Requires Calculus) In the multiple regression model you estimate the effect on Yi of a unit change in one of the Xi while holding all other regressors constant. This
A) makes little sense, because in the real world all other variables change. B) corresponds to the economic principle of mutatis mutandis. C) leaves the formula for the coefficient in the single explanatory variable case unaffected. D) corresponds to taking a partial derivative in mathematics.