Luis has a factory that he wants to use to make tractors, but the government makes him produce hospital beds. He would like to make 1,000 beds per day, but he is allowed to make only 500 beds. Which of the following countries does Luis most likely live in?

A perfectly competitive firm trying to maximize profits in the short run will expand output

A. until total revenue equals total cost. B. until marginal cost equals average variable cost. C. until marginal cost begins to rise. D. as long as marginal revenue is greater than marginal cost.

Suppose you are testing the statistical significance (at the 1% significance level) of a parameter estimate from the regression model: M = a + bR + cIwhich is estimated using a cross-section data set on 22 firms. The critical value of the appropriate test statistic is

A. tcritical = 2.845. B. Fcritical = 5.93. C. tcritical = 2.861. D. Fcritical = 19.44. E. tcritical = -2.845.