The major advantage of using cross-sectional analysis for long-run costs studies includes
A)the inclusion in the sample of different plants of different sizes.
B)the avoidance of having to adjust for inflationary trends.
C)the avoidance of having to account for interregional cost differences.
D)All of the above
E)A and B above

Question

Quizplus · Accepted Answer

Cross-sectional analysis allows for the inclusion of different plants of various sizes and avoids the need to adjust for inflationary trends, making options A and B correct. It does not inherently avoid the need to account for interregional cost differences.

The Major Advantage of Using Cross-Sectional Analysis for Long-Run Costs