Suppose that, in a fixed effects analysis, controlling for the policy intervention in the current time period, the next period’s policy assignment predicts the outcome in the current period. This means that the research design is valid.
Answer the following statement true (T) or false (F)
False
Rationale: If controlling for the intervention this period, next period's assignment helps predict the outcome this period, then the fixed effects estimator is likely to have been biased.
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Bill is an accountant for a small machine shop. His boss has asked him to calculate the shop's total fixed cost. Which method will get Bill the correct answer?
A. subtracting total variable costs from total revenue B. calculating the product of average total cost and quantity C. subtracting the average variable cost from the total cost D. subtracting the total variable cost from the total cost
Can positive economic profits persist under monopolistic competition in the long run. Why?
What will be an ideal response?