If demand for the finished good increases, the demand for the type of labor producing this good will also increase

Which of the following is a relevant cost?

A) replacement cost B) sunk cost C) historical cost D) fixed cost E) All of the above are relevant.

When having a choice of which estimator to use with a binary dependent variable, use

A) probit or logit depending on which method is easiest to use in the software package at hand. B) probit for extreme values of X and the linear probability model for values in between. C) OLS (linear probability model) since it is easier to interpret. D) the estimation method which results in estimates closest to your prior expectations.