The Primary Force Encouraging the Entry of New Firms into a Purely

question 145

Multiple Choice

The primary force encouraging the entry of new firms into a purely competitive industry is

• A)normal profits earned by firms already in the industry.
• B)economic profits earned by firms already in the industry.
• C)government subsidies for start-up firms.
• D)a desire to provide goods for the betterment of society.

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Definitions:

Null Hypothesis

A statistical hypothesis that assumes no significant difference exists in a particular condition or feature between two or more sets of data.

Supported

The state or condition of being backed up with evidence or data, making an assertion more robust or credible.

Reject

In statistics, to conclude that there is enough evidence to discard the null hypothesis in favor of the alternative hypothesis.

F-Ratio

A statistical measure used in the context of ANOVA, calculated as the variance between sample means divided by the variance within the samples.