Which of the Following Equations Is an Overidentified Equation?​

question 15

Multiple Choice

Which of the following equations is an overidentified equation?​

• A)​y₁ = α₁₂y₂ + α₁₃y₃ + β₁₁z₁ + u₁
• B)​y₂ = α₂₁y₁ + β₂₁z₂ + β₂₃z₃ + u₂
• C)​y₃ = α₃₂y₁ + β₃₁z₁ + β₃₂z₂ + β₃₃z₃ + β₃₄z₄ + u₃
• D)​y₁ = β₁₀ + α₁y₂+ z₁β₁ + u₁

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Definitions:

Cournot Duopolists

Firms in a duopoly market structure that determine their output level assuming the output of their competitor is fixed, named after Antoine Cournot.

Demand Curve

A graphical representation showing the relationship between the price of a good and the amount of the good that consumers are willing and able to purchase at various prices.

Total Costs

The overall expenditure associated with producing goods or services, embracing both fixed and variable costs.

Flight Capacity

The maximum number of passengers or quantity of cargo that an aircraft can carry.