In Long-Run Competitive Equilibrium P = SRATC, Because If P

question 28

Multiple Choice

In long-run competitive equilibrium P = SRATC, because if P > SRATC

• A)losses in the industry would cause some existing firms to exit the industry.
• B)positive economic profit would attract firms to the industry in order to obtain the profits.
• C)firms would not be producing the quantity of output at which MR = MC.
• D)firms would not be covering total fixed costs.
• E)none of the above

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Definitions:

Population Mean

The average of a set of values, taken from the entire population of data.

Confidence Level

The probability that a population parameter will fall between a set of values for a certain proportion of times.

Confidence Interval

A range of values, derived from sample data, that is likely to contain the value of an unknown population parameter with a specified level of confidence.

Confidence Interval

A variety of values, sourced from sample statistics, with a high likelihood of containing an undetermined population parameter's value.