An estimated short-run cost function
A)can be used to make price and output decisions.
B)holds the capital stock constant.
C)can be estimated using time-series data.
D)both a and c
E)all of the above

Question

Quizplus · Accepted Answer

An estimated short-run cost function can indeed be used to make price and output decisions, holds the capital stock constant as it assumes some factors of production are fixed in the short run, and can be estimated using time-series data to observe how costs change over time with changes in output levels.

An Estimated Short-Run Cost Function