When Free Entry Is One of the Attributes of a Market

question 73

Multiple Choice

When free entry is one of the attributes of a market structure, economic profits are:

• A)eventually driven to zero
• B)negative for all firms
• C)never above or below zero
• D)always positive

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Definitions:

SSE

Sum of Squared Errors, a measure used in statistics to quantify the discrepancy between the observed and model-predicted values.

Sum Of Squares

In statistics, the sum of squares is a measure used to quantify the variation or dispersion of a set of numbers.

Independent Variables

Variables in an experiment or model that are manipulated or classified by the researcher to observe their effect on the dependent variable.

Standardized Residual

The value obtained by dividing a residual by its standard deviation.