Properties of Long-Run Competitive Equilibrium with Free Entry Include

question 22

Multiple Choice

Properties of long-run competitive equilibrium with free entry include:

• A) an equilibrium price equal to the minimum MC.
• B) firms earning zero profits.
• C) active firms producing at their maximum scales of production.
• D) All of these are properties of long-run competitive equilibrium.

---

Definitions:

Test Statistic

A calculated value from sample data used to assess the viability of a hypothesis in a statistical test.

Degrees of Freedom

The count of distinct values or amounts that can be attributed to a statistical distribution while respecting all existing limitations.

Multinomial Experiment

An experiment that involves trials where each trial results in one outcome from a set of more than two possible outcomes.

Fixed Number of Trials

A specified, constant number of attempts or operations conducted in an experiment or process, typically used in statistical trials.