Which of the Following Statements Is False

question 35

Multiple Choice

Which of the following statements is false?

• A)Given the nature of cost curves, positive economic profits can only induce entry of new firms.
• B)Entry and expansion can occur at the same time in the same industry.
• C)When positive economic profits prevail in an industry, firms often expand.
• D)When economic profits are negative, firms might leave an industry.
• E)An industry ceases to either expand or contract when economic profits are zero.

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Definitions:

Likelihood

The probability of a set of observations given a particular statistical model.

Joint Probability

The likelihood of two or more events occurring simultaneously given the intersection of the events.

Intersection

The point or set of points where two or more mathematical sets or geometrical shapes meet or overlap.

Union of Events

A set operation that combines all the outcomes of two or more events, with no duplicate outcomes.