In an Industry with Free Entry and Exit, Positive Economic

question 135

Multiple Choice

In an industry with free entry and exit, positive economic profit:

• A)indicates a market failure.
• B)can never occur.
• C)cannot be sustained indefinitely.
• D)can be sustained indefinitely.

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Definitions:

Independent Variable

In an experiment, this is the element that is intentionally varied or adjusted by the scientist to determine its influence on the dependent variable.

Dependent Variable

The variable in an experiment that is expected to change as a result of manipulations of the independent variable.

Inferential Statistic

Statistical methods that allow researchers to make inferences or predictions about a population based on a sample of data from that population.

Normal Distribution

A continuous probability distribution shaped like a symmetrical bell, where most occurrences take place around the central peak and probabilities taper off equally towards both tails.