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Consider the following model:
Y*i= β0Xt β1eUt
a) Using the stock adjustment model, estimate the short-run and long-run elasticities
b) Comment on the following processes : i) Autoregressive ii) Distributed lag
c) How is a fixed effect model (FEM) different from an error components model (ECM)?
d) How do we test for "ARCH Effects"?
e) Briefly comment on two information criteria for model selection
1. (classical monopoly pricing) A monopolist faces a demand curve q (p) = 100 p: (a) If its cost function is C (q) = 2q; what is the optimal level of price and quantity? (b
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what is the short run and long run effects of a new idea creating by a restaurateur i.e home cooking services in the perfect competitive market?
What is suitable technology? Technology is suitable when this employs methods which make the best use of accessible resources that is labour-intensive, straightforward techniqu
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