The logic of control variables in IV regressions
A) parallels the logic of control variables in OLS
B) only applies in the case of homoskedastic errors in the first stage of two stage least squares estimation
C) is different in a substantial way from the logic of control variables in OLS since there are two stages in estimation
D) implies that the TSLS is efficient
Answer: A) parallels the logic of control variables in OLS
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The process by which monopoly profits lead to technological progress in known as
A) economies of scale. B) destructive creation. C) imperfect competition. D) creative destruction.
Ceteris paribus, in which of the following cases would we expect economic profits to be greatest? a. an unregulated monopolist who is able to price discriminate
b. an unregulated monopolist who is unable to price discriminate. c. a regulated monopolist required to charge a price no greater than marginal cost. d. a regulated monopolist required to charge a price no greater than average cost.