An advantage of using the cross-sectional regression method in estimating production is that
A)the problem of technological change over time is overcome.
B)there is no need to adjust data,which are in monetary terms for geographical differences.
C)we can assume that all plants operate at their most efficient input combinations.
D)All of the above

Question

Quizplus · Accepted Answer

The cross-sectional regression method allows for the problem of technological change over time to be overcome, making it an advantage over other methods. However, options B and C are not necessarily advantages of the cross-sectional regression method.

An Advantage of Using the Cross-Sectional Regression Method in Estimating