Use the Figure Below to Answer the Following Questions

question 105

Multiple Choice

Use the figure below to answer the following questions.

Figure 12.4.3
-Refer to Figure 12.4.3, which shows the cost curves and marginal revenue curve of a firm in a perfectly competitive market. In the long run, market

• A)demand will increase.
• B)demand will decrease.
• C)supply will increase.
• D)supply will decrease.
• E)demand and market supply will both increase.

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Definitions:

Population

The entire group of individuals or instances about whom we wish to make conclusions in a statistical study.

Standard Deviation

A statistical index that signifies the distribution of data points around the mean of a dataset.

Critical Value

The threshold value that a test statistic must exceed to reject the null hypothesis in a statistical test.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is in fact true. It is used to determine the threshold of statistical significance.