Suppose that when a perfectly competitive firm produces 1,000 units of output, its total variable cost is $1,900. If the marginal cost of producing the 1,000th unit is $1.70, and if the market price of each unit of output is $1.70, then the firm should:

The OLS estimators of the coefficients in multiple regression will have omitted variable bias

A) only if an omitted determinant of Yi is a continuous variable. B) if an omitted variable is correlated with at least one of the regressors, even though it is not a determinant of the dependent variable. C) only if the omitted variable is not normally distributed. D) if an omitted determinant of Yi is correlated with at least one of the regressors.

If a firm sells its output at a price greater than AC, it will earn economic profit

a. True b. False Indicate whether the statement is true or false