Which of the following statements about estimation of long run cost functions is true?
A.It is easy to determine if each firm is operating the optimal scale of plant at the optimal level of output
B. Input prices should usually be included together with the levels of output as independent explanatory variables in the regression.
C.Time-series data are usually used to estimate long- run cost functions
D. It is easy to reconcile the different accounting and operational practices of the different firms in a cross sectional sample.
Which of the following statements about estimation of... View the full answer