Explain What Happens to the Long-Run Supply Curve of an Industry

question 356

Essay

Explain what happens to the long-run supply curve of an industry when firm entry raises the price of inputs used in the industry.

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Definitions:

Nonparametric Method

A type of statistical analysis that does not assume a specific distribution for the data, often used when data doesn't fit normal distribution assumptions.

Matched Pairs

A statistical technique involving the pairing of observations or data sets based on certain criteria, often used in experiments to compare two groups while controlling for variables.

Ordinal Data

Ordinal data refers to a type of categorical data with a set order or scale to it, but without a consistent difference between each category.

Mann-Whitney Test

A nonparametric test used to assess whether there is a significant difference between two independent samples, an alternative to the t-test when certain assumptions are not met.