The Figure Given Below Shows the Revenue and Cost Curves

question 83

Multiple Choice

The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.5
MC: Marginal cost curve
MR: Marginal revenue curve.ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-Which of the following statements is true in the context of the long run?

• A)All the factors of production are fixed.
• B)No new firms enter the market.
• C)The producer can vary all the factors of production.
• D)The firms earn positive economic profit.
• E)Large firms tend to acquire market power.

---

Definitions:

Residual Analysis

The analysis of the residuals used to determine whether the assumptions made about the regression model appear to be valid. Residual analysis is also used to identify outliers and influential observations.

Regression Model

A statistical technique used to estimate the relationship between a dependent variable and one or more independent variables.

SST

A measure of the total variation in a dataset that is the sum of squares total, often used in the context of regression analysis.

SSE

The overall sum of errors squared, highlighting the divergence between a model's predictions and real-world data observations.