Question

In: Statistics and Probability

We can employ the partial F test to test for increasing returns to scale because F-test...

We can employ the partial F test to test for increasing returns to scale because F-test is appropriate when the alternative is an inequality, “>” or “<”.
a.True
b.False

Solutions

Expert Solution

The given statement is False because we use F only as a right tailed test.

Option B is correct.


Related Solutions

With appropriate examples, define increasing returns to scale, decreasing returns to scale and constant returns to...
With appropriate examples, define increasing returns to scale, decreasing returns to scale and constant returns to scale. (Please write out answer versus charting it)
a) Do the following production functions exhibit constant returns to scale, increasing returns to scale, or...
a) Do the following production functions exhibit constant returns to scale, increasing returns to scale, or decreasing returns to scale? For full credit, show why. 1) Q= 10L^ 0.5K^0.3 2) Q= 10L^0.5K^0.5 3) Q= 10L^0.5K^0.7 4) Q= min{K, L} b) Which objects pin down a_LC and a_KC? Explain carefully. c) Why does labor being mobile across sectors automatically imply revenue maximization for firms? Explain carefully.
a) Why do increasing returns to scale occur? b)why do decreasing returns to scale occur?
a) Why do increasing returns to scale occur? b)why do decreasing returns to scale occur?
Explain specialization and increasing returns to scale in the short run.
Explain specialization and increasing returns to scale in the short run.
5. (14 marks) In the increasing returns to scale model, where firms can differ in terms...
5. In the increasing returns to scale model, where firms can differ in terms of their marginal cost of production, a) Explain how you would expect opening up to trade to affect the cutoff marginal cost. Explain also which firms win and which firms lose, specifically making reference to a diagram with the demand curve (and any changes to it) to help you explain your points. b) Suppose that the rise of Chinese import competition leads to an increase in...
Consider an industry that produces differentiated products with increasing returns to scale.
Consider an industry that produces differentiated products with increasing returns to scale. The market structure is monopolistic competition. The firms in the industry have different productivities and different marginal cost.   How would trade liberalization affect demand curve facing a firm? Would the change have the same effects on firms with different marginal cost? Why? Explain why international trade could improve the efficiency of the industry. In many countries, the exporting firms are more productive than firms which serve only...
A: Explain what Returns to Scale measures and distinguish between increasing, decreasing and constant Returns to...
A: Explain what Returns to Scale measures and distinguish between increasing, decreasing and constant Returns to Scale B: Explain the relationship between Returns to Scale and Long Run Average Cost C: Explain the relationship between Marginal Product of Labor and Marginal Cost. D: Explain why a firm's marginal Cost curve represents its Supply Curve.
A firm has increasing returns to scale if: a proportional change in the use of all...
A firm has increasing returns to scale if: a proportional change in the use of all inputs produces a more than proportional change in output. a proportional change in the use of all inputs produces a less than proportional change in output. a proportional change in the use of all inputs produces the same proportional change in output. an increase in capital leads to an increase in output.
Consider a Robinson Crusoe economy with increasing returns to scale technology and the preference is such...
Consider a Robinson Crusoe economy with increasing returns to scale technology and the preference is such that coconut and leisure are perfect complements. Draw this economy on a diagram.
Consider a Robinson Crusoe economy with increasing returns to scale technology and the preference is such...
Consider a Robinson Crusoe economy with increasing returns to scale technology and the preference is such that coconut and leisure are perfect complements. Draw this economy on a diagram. Find Pareto Optimal allocation. Find competitive equilibrium. *You can take reasonable parameters for your own.*
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT