Cost Saving Developments-E

question 11

Multiple Choice

Cost saving developments-e.g. ,a new production procedure that shortens a production process by two steps-in a perfectly competitive industry will lead to:

• A)entry by new firms.
• B)economic profits by new firms.
• C)economic profits for a few firms for a short time.
• D)a leftward shift of the supply curve.

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Definitions:

Directional

Pertains to hypotheses or research that specify a direction (increase or decrease) in the expected outcome.

Null Hypothesis

A default hypothesis that there is no significant difference or effect, typically to be tested against an alternative hypothesis.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect exists between certain characteristics of a population or data.

Equals Sign

A symbol (=) indicating mathematical equality between two expressions.