Suppose That Some Firms in a Competitive Industry Are Earning

question 447

Multiple Choice

Suppose that some firms in a competitive industry are earning zero economic profits, while others are experiencing losses. All else equal, in the long run, we would expect the number of firms in the industry to

• A)increase.
• B)decrease.
• C)remain the same.
• D)We do not have enough information with which to answer this question.

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Definitions:

Internal Consistency Reliability

A measure of the extent to which all items in a test measure the same concept or construct.

Test-Retest Reliability

A measure of consistency where the same test is administered to the same participants at two different points in time to assess the stability of the results.

Interrater Reliability

The degree of agreement among different raters or observers assessing the same phenomenon, reflecting the consistency of their measurements.

Interrater Reliability

A measure of the extent to which different observers or raters agree in their assessment decisions.