You Can Tell a Firm Is Operating in a Market

question 143

Multiple Choice

You can tell a firm is operating in a market that is in long-run competitive equilibrium if:

• A) economic profits are positive.
• B) economic profits are negative.
• C) your accountant tells you profits are negative.
• D) your accountant tells you profits are zero.
• E) economic profits are zero.

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Definitions:

Sampling Distribution

The likelihood distribution of a statistic, achieved by drawing numerous samples from a certain population.

Spread

In statistics, it refers to the range of a data set, which shows the extent to which numerical values differ from each other.

Center

In statistics, the central point of a data set, around which a whole dataset is distributed, usually measured as mean or median.

Incentive

Something that motivates or encourages someone to do something or to work harder.