Author Question: Monopoly firms have a downward sloping curve in the short-run because a. They have no close ... (Read 23 times)

luminitza · **on:** Jul 1, 2018

Monopoly firms have a downward sloping curve in the short-run because
a. They have no close substitutes
b. There are no barriers to entry
c. They have no cost advantage over their rivals
d. None of the above

Question 2

Emma uses a linear model to forecast quarterly same-store sales at the local Garden Center. The results of her multiple regression is: Sales = 2,800 + 200T - 350D where T goes from 1 to 16 for each quarter of the year from the first quarter of 2006 (06I) through the fourth quarter of 2009 (09 IV). D is a dummy variable which is 1 if sales are in the cold and dreary first quarter, and zero otherwise, because the months of January, February, and March generate few sales at the Garden Center. Use this model to estimate sales in a store for the first quarter of 2010 in the 17th month; that is: 2010 I. Emma's forecast should be:
a. 5,950
b. 6,200
c. 6,350
d. 6,000
e. 5,850