When Economic Profits Are Negative in a Perfectly Competitive Industry

question 23

Multiple Choice

When economic profits are negative in a perfectly competitive industry,

• A) we would expect the market supply curve to shift to the left as a result.
• B) we would expect the market supply curve to shift to the right as a result.
• C) we would not expect any change in the market supply curve to result.
• D) we would expect that the market demand curve to shift left as a result

---

Definitions:

Dunnett Test

Statistical procedure used to control familywise error when comparing each group with a single reference group.

Watching Condition

A scenario or setup in experiments where subjects observe events or behaviors without intervening, often used to gather naturalistic data.

Predicting Condition

Refers to specifying the criteria or conditions under which certain outcomes are expected to occur.

Dunnett Test

A post hoc test used after ANOVA to compare multiple groups against a single control group, assessing if there are significant differences between the control and each of the other groups.