A potential problem with cross-section cost data is that
A. at least one input is fixed over time.
B. different firms face different input prices.
C. nominal cost data include the effect of inflation.
D. both a and b
E. none of the above
Answer: B
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Lilly Davis has $5 per week to spend on any combination of ice cream and candy. The price of an ice cream cone is $2 and the price of a candy bar is $1. The table below shows Lilly's utility values
Use the table to answer the questions that follow the table. Quantity of Ice Cream Cones Total Utility Marginal Utility Marginal Utility per Dollar Quantity of Candy Total Utility Marginal Utility 1 20 1 20 2 38 2 38 3 52 3 48 4 62 4 54 a. Complete the table by filling in the blank spaces. b. Suppose Lilly purchases 2 ice cream cones and 1 candy bar. Is she consuming the optimal consumption bundle? If so, explain why. If not, what combination should she buy and why?
Which of the following is a correct listing of industry models ordered from most competitive to least competitive?
a. perfect competition - monopolistic competition - monopoly b. perfect competition - monopoly - monopolistic competition c. monopolistic competition - perfect competition - monopoly d. monopolistic competition - monopoly - perfect competition