A model:
A) is often based on simplifying assumptions that are not necessarily true.
B) can be tested without data or statistics.
C) is a more complex representation of reality than a theory.
D) can never be used to predict the future but helps explain the past.
A
Economics
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The Lerner index measures
A) a firm's potential monopoly power. B) the amount of monopoly power a firm chooses to exercises when maximizing profits. C) a firm's potential profitability. D) an industry's potential market power.
Economics
Owners of land are compensated according to the
a. absolute level of production from the land. b. number of laborers the land can support. c. purchase price of the land stock. d. value of the marginal product of land.
Economics