In a Constant Cost Industry

question 78

Multiple Choice

In a constant cost industry,

• A) a natural monopoly is likely to occur.
• B) total cost is the same, no matter how much a firm produces.
• C) the long-run supply curve will be perfectly elastic.
• D) entry of new firms in the industry will lead to a reduction in the cost of inputs.

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Definitions:

Critical Value

A point on the scale of the test statistic beyond which we reject the null hypothesis, and it depends on the chosen significance level.

Independent Variables

Variables in a statistical model that are manipulated or changed to observe their effect on dependent variables.

Coefficient of Determination

A measure used in statistical modeling that indicates how well data points fit a line or curve. It is represented as a value between 0 and 1.

Dependent Variable

A variable in statistical modeling whose value is influenced by other variables.