Figure 4-13 -Refer to Figure 4-13.The Shift from S to S' Could

question 355

Multiple Choice

Figure 4-13

-Refer to Figure 4-13.The shift from S to S' could be caused by an

• A) increase in the price of the good.
• B) improvement in production technology.
• C) increase in income.
• D) increase in input prices.

Understand the conditions for long-run economic profit or loss in price-taker markets.

Assess the minimum price a firm would need to charge to cover its average total cost in the long run.

Distinguish between price searchers and price takers.

Evaluate the effect of market entry or exit on market supply, price and firm profitability.

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Definitions:

Mean

The arithmetic average of a set of scores.

σ

A symbol commonly used in statistics to represent the standard deviation of a population.

Null Hypothesis

A statement in statistical hypothesis testing that asserts there is no significant effect or difference.

μ

A symbol representing the mean or average of a population in statistics.