A Perfectly Competitive Firm in a Constant-Cost Industry Produces 3,000

question 211

Multiple Choice

A perfectly competitive firm in a constant-cost industry produces 3,000 units of a good at a total cost of $36,000.The prevailing market price is $15.What will happen to the number of firms in the industry and to the industry's output in the long run?

• A)The number of firms and the industry's output increase.
• B)The number of firms and the industry's output decrease.
• C)The number of firms remains constant and the industry's output increases.
• D)The number of firms remains constant and the industry's output decreases.

Understand how to set up null and alternative hypotheses for various statistical tests.

Calculate test statistics for different types of data and studies.

Understand the concept of p-value and its computation.

Determine the conclusion based on the p-value and the level of significance for hypothesis testing.

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Definitions:

Confidence Interval

A span of values, obtained from sample information, which is expected to encompass the value of an unidentified population characteristic.

Mean

The arithmetic average of a set of values, calculated by adding all the numbers together and dividing by the count of values.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, showing how much the values differ from the mean.

Mean

The average of a set of numerical values, calculated as the sum of the values divided by the number of values.