The Result That Perfectly Competitive Firms Produce at the Lowest

question 101

Multiple Choice

The result that perfectly competitive firms produce at the lowest per-unit cost is derived from the assumptions of

• A)homogeneous products.
• B)few sellers.
• C)firms facing horizontal demand curves.
• D)free entry and exit.

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Definitions:

Degrees Of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution, often reflecting the number of independent pieces of information.

Variance

A statistical measure of the spread between numbers in a dataset, indicating how much the elements differ from the mean.

Degrees Of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution without violating any constraints.

Student T Distribution

The Student T distribution is a probability distribution that is used to estimate population parameters when the sample size is small and when the population variance is unknown.