The Larger the Number of Firms in an Industry and the Less

question 27

True/False

The larger the number of firms in an industry and the less the extent of product differentiation, the greater will be the elasticity of the individual seller's demand curve.

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Definitions:

Internal Validity

Refers to how well an experiment is conducted and whether it measures what it's supposed to measure, without being confounded by other factors.

Independent Variable

A variable in an experiment that is manipulated to observe its effects on a dependent variable.

Internal Validity

The extent to which a study provides evidence that a causal relationship exists between the variables it examines, free from confounding factors.

Random Assignment

Use of a random "chance" procedure (such as a random number generator or coin toss) to determine the condition in which an individual will participate.