If the Long-Run Industry Supply Curve in a Perfectly Competitive

question 155

Multiple Choice

If the long-run industry supply curve in a perfectly competitive market is horizontal,then very likely input prices will ____ as industry output expands.

• A) increase
• B) decrease
• C) remain constant
• D) first increase and then decrease

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Definitions:

Dependent Variable

A factor in a study or model that is anticipated to vary as a result of alterations in the independent variable.

Independent Variable

An experimental variable that is changed or controlled to test its effects on dependent variables.

Coefficient Of Determination

A metric in statistics that evaluates the percentage of variability in the outcome variable that can be explained by the predictor variable(s).

SSE

Sum of Squared Errors, a measure used in statistics to quantify the discrepancy between data points and a model's predictions.