One Explanation for the Existence of an Increasing-Cost Industry Is

question 41

Multiple Choice

One explanation for the existence of an increasing-cost industry is:

• A) increasing marginal returns to labor occur.
• B) firms produce beyond the point of minimum long-run average total costs.
• C) perfectly elastic long-run supply schedules are observed in the industry.
• D) as the industry expands,input prices are bid up for some factor of production.

---

Definitions:

Wilcoxon Rank-sum Test

A non-parametric statistical test used to compare two independent samples to determine if they come from the same distribution.

Independent Samples

Two or more groups of samples that are not related or connected in any way in the context of an experiment or study.

Relative Frequency Distributions

A distribution where each value is expressed as a relative frequency or proportion of the total number of occurrences.

Normal Approximation

The process of using the normal distribution to approximate the distribution of a sample statistic.