In a Monopoly in the Long Run

question 132

Essay

In a monopoly in the long run:
A.economic profits will be eliminated by the entry of rival firms.
B.economic profits will be reduced but not eliminated entirely by the entry of rival firms.
C.entry by other firms will not occur.
D.social surplus is maximized.

---

Definitions:

Coefficient Of Determination

A measure used in statistical analysis to assess the goodness of fit of a model, represented as the proportion of variance in the dependent variable that is predictable from the independent variable(s).

Pearson Correlation Coefficient

A measure of the linear correlation between two variables X and Y, giving a value between -1 and 1 which indicates the strength and direction of the correlation.

Sum Of Squares

A statistical measure that quantifies the variation within a set of numbers, calculated as the sum of the squared differences from the mean.

Least Squares Estimates

The estimates of the parameters in a regression model obtained by minimizing the sum of squared differences between observed and predicted values.