When Entry and Exit Behavior of Firms in an Industry

question 143

Multiple Choice

When entry and exit behavior of firms in an industry does not affect a firm's cost structure,

• A)the long-run market supply curve must be horizontal.
• B)the long-run market supply curve must be upward-sloping.
• C)the long-run market supply curve must be downward-sloping.
• D)we do not have sufficient information to determine the shape of the long-run market supply curve.

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Definitions:

Calculate

The process of determining a result numerically using mathematical operations or algorithms.

Mathematical Calculations

Mathematical calculations involve performing operations such as addition, subtraction, multiplication, and division to solve problems or analyze data.

Appropriate Statistic

An appropriate statistic refers to the selection of suitable statistical methods or tests that are fit to analyze the given data effectively.

Alternative Hypothesis

In hypothesis testing, the hypothesis that proposes a specific relationship between variables, opposed to the null hypothesis.