Why Is the Range Effect Known as a "Ceiling Effect

question 6

Multiple Choice

Why is the range effect known as a "ceiling effect" a problem for researchers?

• A) The scores are already so high that there is no chance of measuring improvement.
• B) The scores are already so low that there is no chance of measuring a decrease.
• C) There is so much room for improvement that the measurements are almost certain to increase.
• D) There is so much room for lower performance that the measurements are almost certain to decrease.

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Definitions:

Barriers To Entry

Obstacles that make it difficult for new competitors to enter a market.

Scale Economies

Cost advantages that a business can achieve due to expansion in the scale of production, leading to a reduction in average costs.

Patents

Legal documents granting an inventor exclusive rights to manufacture, use, or sell an invention for a certain number of years.

Cournot Model

Oligopoly model in which firms produce a homogeneous good, each firm treats the output of its competitors as fixed, and all firms decide simultaneously how much to produce.