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High cholesterol levels have been shown to be a contributing factor to heart disease and death due to cardiovascular disease for many decades.In the 1970s, scientists used this information to develop a hypothesis that giving a medicine to reduce blood cholesterol levels could reduce the chances of developing cardiovascular disease or dying from cardiovascular disease.They tested a group of people living in a town called Framingham, Massachusetts.This study became known as the Framingham Study, and it is very well known because it did not support the hypothesis that giving cholesterol-lowering medications would reduce the risk of developing or dying from cardiovascular disease.Does this mean that high cholesterol is not a risk factor for heart disease? What does this demonstrate about the scientific process, especially as it pertains to human studies? You can find a copy of the study online and read it, if necessary.
Perfectly Elastic
describes a demand or supply scenario where quantity demanded or supplied changes infinitely in response to any change in price.
Efficient Level of Output
The quantity of production that maximizes the difference between total revenue and total cost, or equivalently, minimizes average total cost.
Perfect Competitor
An idealized market structure in which many firms sell identical products, entry and exit are easy, and all buyers and sellers are well-informed, leading to perfect competition.
Inelastic Demand Curve
A situation where the demand for a good or service does not significantly change with a change in its price.
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