Which of the following statements is (are) true?
A) A model is a set of simplifying assumptions about some aspect of the real world.
B) Models are based on assumed conditions that are simpler than those of the real world.
C) A model cannot be a complete representation of the real world.
D) All of the above are true.
Ans: D) All of the above are true.
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Suppose the production function is q = 12 L0.25K0.75. Determine the long-run capital-to-labor ratio (K/L) if the cost a unit of capital (r) is three times the cost of a unit of labor (w)
What will be an ideal response?
The deadweight loss generated by a perfect-price-discriminating monopoly
A) equals the deadweight loss of a single-price monopoly. B) is greater than the deadweight loss of a single-price monopoly. C) equals zero. D) equals the sum of all lost consumer surplus.