A stochastic process {xt: t = 1,2,….} with a finite second moment [E(xt2) < 
] is covariance stationary if:
A. E(xt) is variable, Var(xt) is variable, and for any t, h
1, Cov(xt, xt+h) depends only on ‘h' and not on ‘t'.
B. E(xt) is variable, Var(xt) is variable, and for any t, h
1, Cov(xt, xt+h) depends only on ‘t' and not on h.
C. E(xt) is constant, Var(xt) is constant, and for any t, h
1, Cov(xt, xt+h) depends only on ‘h' and not on ‘t'.
D. E(xt) is constant, Var(xt) is constant, and for any t, h
1, Cov(xt, xt+h) depends only on ‘t' and not on ‘h'.
Answer: C
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Suppose a demand schedule is P = 100 - Q and a supply schedule is P = 20 + 2Q. What is the marginal net benefit curve?
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A price maker is
A) a consumer who participates in an auction where she announces her willingness to pay for a product. B) a firm that is able to sell any quantity at the highest possible price. C) a person who actively seeks out the best price for a product that he or she wishes to buy. D) a firm that has some control over the price of the product it sells.