If Firms in a Perfectly Competitive Market Are Incurring an Economic

question 103

Multiple Choice

If firms in a perfectly competitive market are incurring an economic loss,some firms will exit.This exit shifts the market

• A)demand curve leftward,and the market price falls.
• B)demand curve rightward,and the market price rises.
• C)supply curve leftward,and the market price rises.
• D)supply curve rightward,and the market price falls.
• E)supply curve leftward and the market demand curve rightward.

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Definitions:

Null Hypothesis

In statistics, the assumption that there is no effect or no difference, and it serves as the basis for significance testing.

Body Mass Index

A measure of body fat based on height and weight that applies to adult men and women, used to categorize underweight, normal weight, overweight, and obesity.

Critical Value

A threshold value that defines the boundary of a rejection region in hypothesis testing, determining whether to reject the null hypothesis.

Obese Canadians

Refers to individuals living in Canada who have a body mass index (BMI) of 30 or higher, indicating obesity.