A Firm Has the Following Cost Structure

question 15

Multiple Choice

A firm has the following cost structure:
If this firm is in a typical perfectly competitive market,in the long run it will likely produce

• A) 4 or fewer units of output.
• B) 5 units of output.
• C) more than 5 units of output.
• D) None of the above are necessarily correct because there is not enough information to tell.

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Definitions:

Scientific Method

Systematic method of obtaining and evaluating information relevant to a problem.

Variable

Measurable factor or characteristic that can vary within an individual, between individuals, or both.

Dependent Variable

In experimental and statistical research, the variable being tested and measured, which is expected to change as a result of manipulations to the independent variable.

Hypothesis

Testable statement about two or more variables and the relationship between them.