A firm's cost of production equals ________
A. all the costs paid with money, called explicit costs
B. the implicit costs of using all the firm's own resources
C. all explicit costs and implicit costs, excluding normal profit
D. the costs of all resources used by the firm whether bought in the marketplace or owned by the firm
D A firm's costs include the opportunity costs of all the resources it uses.
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What is the economies of scope character for a firm that has a straight-line product transformation curve?
A) Economies of scope (SC > 0) B) Diseconomies of scope (SC < 0) C) SC = 0 D) SC = 1
In practice, the most difficult aspect of IV estimation is
A) finding instruments that are both relevant and exogenous. B) that you have to use two stages in the estimation process. C) calculating the J-statistic. D) finding instruments that are exogenous. Relevant instruments are easy to find.