The AR(p)model

question 5

Multiple Choice

The AR(p) model

• A)is defined as Yt = β0 + βpYt-p + ut.
• B)represents Yt as a linear function of p of its lagged values.
• C)can be represented as follows: Yt = β0 + β1Xt + βpYt-p + ut.
• D)can be written as Yt = β0 + β1Yt-1 + ut-p.

Determine the minimum price required for a firm to supply a positive amount of output in the long run.

Analyze the effects of changes in factor prices on the supply function.

Calculate the optimal number of units to produce or repair for maximum profit in the long run based on given cost and price information.

Appreciate the role of production functions in shaping supply decisions in economics.