In Short-Run Equilibrium in Perfect Competition

question 202

Multiple Choice

In short-run equilibrium in perfect competition,

• A)each firm's profit is measured by P - ATC
• B)each firm's profit is measured by ATC - P
• C)each firm's (economic)profit is positive
• D)the amount sold by existing firms at the market price is exactly equal to the quantity consumers demand at that price
• E)no firm wishes to enter the market

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Definitions:

Independent Variables

Independent variables are the conditions or inputs that researchers manipulate or select in an experiment to determine their effect on dependent variables.

Observations

Individual instances of data collected through studies or experiments.

Degrees Of Freedom

The number of independent pieces of information used in the calculation of a statistic, often denoting the number of values that are free to vary.

Unit Change

A change in the independent variable by one unit and its effect on the dependent variable, often analyzed in regression models or experiments to understand causal relationships.