The figure above shows an education market in which the government is providing households with vouchers. What is the efficient quantity of students?
A) 2 million
B) 4 million
C) 6 million
D) more than 6 million
E) more than 4 million and less than 6 million
C
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If a typical monopolistically competitive firm is making short-run losses, then
A) as some firms leave, the demand for the products of the remaining firms will become more elastic. B) other more competitive firms will enter the market. C) as some firms leave, the remaining firms will experience an increase in the demand for their products. D) the industry will eventually cease to exist.
A study based on OLS regressions is internally valid if
A) the errors are homoskedastic, and there are no more than two binary variables present among the regressors. B) you use a two-sided alternative hypothesis, and standard errors are calculated using the heteroskedasticity-robust formula. C) weighted least squares produces similar results, and the t-statistic is normally distributed in large samples. D) the OLS estimator is unbiased and consistent, and the standard errors are computed in a way that makes confidence intervals have the desired confidence level.