Which of the Following Factors Explain the Difference in Long-Run

question 128

Multiple Choice

Which of the following factors explain the difference in long-run profits earned by a monopolist and a perfectly competitive firm?​

• A)Monopolists experience economies of scale.
• B)Perfectly competitive firms have high opportunity costs.
• C)The demand for the monopolist's output is inelastic.
• D)The demand for the monopolist's output is elastic.
• E)There are no barriers to entry in perfect competition.

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Definitions:

Alternative Hypothesis

A statement in hypothesis testing that proposes a significant difference, effect, or relationship exists in the population, opposing the null hypothesis.

Test Statistic

A statistic whose calculated value is used to decide whether to reject the null hypothesis in a hypothesis test.

Population Distribution

The distribution of a characteristic within an entire population, described by parameters such as mean, variance, and standard deviation.

Null Hypothesis

A hypothesis that suggests there is no statistical significance between two variables, often used as a default hypothesis in testing.