In a Sequential Contestable Market Game

question 178

Multiple Choice

In a sequential contestable market game

• A) a small number of firms can behave like firms in perfect competition.
• B) the outcome is always a monopoly equilibrium.
• C) the dominant firm always makes a monopoly profit, while other firms make zero economic profits.
• D) a firm that enters the market first is protected from potential entrants by natural barriers.

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Definitions:

Null Hypothesis

A statement used in statistics that proposes there is no effect or no difference, and it is the hypothesis that researchers aim to test against.

Probability

A measure of the likelihood that an event will occur, quantified as a number between 0 and 1.

Null Hypothesis

An assumption in hypothesis testing that there is no significant difference or effect.

.05

Often signifies the alpha level used in hypothesis testing that represents a 5% risk of concluding that a difference exists when there is no actual difference.