Assume the Following for a Certain Industry: (L) There Is

question 57

Multiple Choice

Assume the following for a certain industry: (l) there is no incentive for firms to enter or exit the industry; (2) for some firms in the industry, short-run average total cost is greater than long-run average total cost at the level of output where marginal revenue equals marginal cost; (3) all firms in the industry are currently producing the quantity of output at which marginal revenue equals marginal cost. Is the industry in long-run competitive equilibrium?

• A)Yes.
• B)No, because of number 2.
• C)No, because of numbers 2 and 3.
• D)No, because of numbers 1 and 2.
• E)No, because of numbers 1, 2, and 3.

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Definitions:

Cp

Cp, or process capability index, is a statistical measurement of a process's ability to produce output within specified limits.

Fully Specified

In the context of models or systems, it refers to having all necessary parameters and conditions clearly defined and detailed.

Multiple Regression Model

A Multiple Regression Model is a statistical method used to predict the value of a dependent variable based on the values of two or more independent variables, assessing the extent of their impact.

ANOVA

A statistical method (Analysis of Variance) used to compare the means of three or more samples to see if they come from the same population.