If a Firm Operating in a Fairly Competitive Market Earns

question 37

Multiple Choice

If a firm operating in a fairly competitive market earns a large economic profit,then,over time,

• A)old firms will exit and prices will rise.
• B)old firms will exit and prices will fall.
• C)new firms will enter and prices will rise.
• D)new firms will enter and prices will fall.

Understand the concept of degrees of freedom and its calculation in t-tests.

Comprehend the implications of the alternative hypothesis in testing differences between means.

Identify the appropriate critical value for hypothesis testing based on sample size and hypotheses.

Interpret the significance (p-value) of statistical tests and its implications on hypothesis testing.

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