Figure 9-17 Which of the Following Statements About the Competitive Price-Taker Firm

question 441

Multiple Choice

Figure 9-17
Which of the following statements about the competitive price-taker firm represented in Figure 9-17 is false?

• A) Short-run losses are minimized at output level q* because MR = MC there.
• B) The firm should shut down in the short run.
• C) If the firm shuts down in the short run, it will suffer a loss equal to the amount of its fixed cost.
• D) If the firm operates in the short run, it will suffer a loss greater than the amount of its fixed cost.
• E) If the firm operates in the short run, it will suffer a loss equal to the amount of its fixed cost plus the uncovered portion of its variable cost.

---

Definitions:

Matched Pairs

A study design in which subjects are paired based on certain characteristics, with one subject in each pair receiving each treatment.

Wilcoxon Signed Rank Test

A statistical hypothesis test that doesn't rely on parameter-based assumptions, designed to evaluate whether there's a difference in the population mean ranks of two related samples, matched samples, or repeated measurements on the same sample.

Wilcoxon Signed Rank Test

A statistical analysis method void of parametric requirements, designed to assess whether two associated samples, matched pairs, or recurrent measurements on an individual sample exhibit differences in their mean rank in the population.

Rank Sums

A non-parametric statistical measure used to compare the distributions of two independent samples by ranking all observations together and then summing ranks for observations belonging to each sample.