Constant Cost Industries

question 66

Multiple Choice

Constant cost industries:

• A) use large portions of the total supply of specialized resources.
• B) significantly increase the demand for inputs when expanding output, and as a result, input prices rise.
• C) do not use inputs in sufficient quantities that a change in industry output would affect the prices of the inputs.
• D) are those in which the cost curves of individual firms shift upwards as industry output expands.

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Definitions:

Test Statistic

A value calculated from sample data that is used in a hypothesis test to determine whether to reject the null hypothesis.

Rejection Region

The range of values for which the null hypothesis is considered not probable and is therefore rejected in a hypothesis test.

Sign Test

A nonparametric test used to determine if there is a difference between matched or paired observations.

Distribution

Refers to the way in which data points are spread out across the range of possible values in a dataset.