Firms Cannot Enter an Industry in Which Positive Profits Are

question 62

Multiple Choice

Firms cannot enter an industry in which positive profits are being earned in

• A) the short run.
• B) the long run.
• C) the short run and in the long run.
• D) As long as positive profits are being earned, firms can enter the industry in both the short run and the long run.

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Definitions:

Independent Variable

A variable in an experiment or model that is manipulated to observe its effect on the dependent variable.

Dependent Variable

A variable in experimental and statistical modeling whose value is dependent on the influence of another variable (the independent variable).

Coefficient Of Determination

A statistic that indicates the proportion of the variance in the dependent variable that is predictable from the independent variable(s).

Estimated Regression Equation

A formula that represents the relationship between dependent and independent variables and is used to predict the value of the dependent variable.