In the Long Run, an Oligopoly

question 113

Multiple Choice

In the long run, an oligopoly

• A)will produce less than a monopoly.
• B)may be able to earn positive economic profits.
• C)will always produce in the range of decreasing returns to scale.
• D)will produce on the portion of the demand curve where demand is price-inelastic.

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Definitions:

Critical Value

A point on the scale of the test statistic beyond which we reject the null hypothesis; it is used to determine the cutoff at which the test statistic is considered extreme.

P-value

The probability of observing test results as extreme as the results actually observed, under the assumption that the null hypothesis is true.

Level of Significance

The criterion used in statistical testing to decide whether to reject the null hypothesis, typically expressed as a probability threshold such as 0.05 or 0.01.

Average Incomes

A metric that calculates the mean income of a group of individuals, typically used for economic assessments.