Under the VAR Assumptions, the OLS Estimators Are

question 10

Multiple Choice

Under the VAR assumptions, the OLS estimators are

• A)consistent and have a joint normal distribution even in small samples.
• B)BLUE.
• C)consistent and have a joint normal distribution in large samples.
• D)unbiased.

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Definitions:

Average Total Cost

The total cost of production divided by the number of goods produced, representing the average cost per unit of output.

Diseconomies of Scale

A situation where as a firm grows larger, the costs per unit increase, due to factors like coordination and operational inefficiencies.

Diminishing Returns

A principle stating that adding more of one factor of production, while holding others constant, will at some point yield lower incremental per-unit returns.

Short Run

A time period during which at least one input, such as plant size, is fixed and cannot be changed by the firm.