Use a Graph to Demonstrate the Circumstances That Would Prevail

question 35

Essay

Use a graph to demonstrate the circumstances that would prevail in a competitive market where firms are earning economic profits. Can this scenario be maintained in the long run? Explain your answer.

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Definitions:

Null Hypothesis

The null hypothesis is a type of hypothesis used in statistics that proposes there is no statistical significance in a set of given observations, serving as a default position until evidence suggests otherwise.

Hypotheses

Statements or predictions that can be tested through scientific research or statistical analysis to determine their validity.

Fair Die

A perfectly balanced six-sided die where each face has an equal probability of landing up when rolled.

Goodness-Of-Fit

A statistical test used to determine how well sample data fits a distribution from a population with a normal distribution.