The Fact That Barriers to Entry Are Low in Competitive

question 168

Multiple Choice

The fact that barriers to entry are low in competitive price-searcher markets means that if current firms are making economic losses,

• A) these losses will remain in the long run because no firms can exit the market.
• B) current firms will exit the market, causing the demand curves that face the remaining firms to increase.
• C) new firms will enter the market, causing the demand curves that face the existing firms to decrease.
• D) new firms will enter the market, causing no change in the demand curves that face the existing firms in the market.

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Definitions:

T Procedure

A statistical method used to test the mean of a population, especially useful when dealing with small sample sizes and unknown population standard deviations.

Outliers

Data points that significantly deviate from the other observations in a dataset, potentially indicating measurement error or an unusual event.

Statistical Procedure

A standard process or series of operations in statistics used for collecting, organizing, summarizing, and analyzing data to draw conclusions or make predictions.

Average Prices

The mean cost calculated by dividing the total sum of all prices by the number of prices in the dataset.