An Industry Previously in Long-Run Equilibrium Might Experience Economic Profits

question 127

Multiple Choice

An industry previously in long-run equilibrium might experience economic profits for any of the following reasons except when

• A)new, cost-saving production technology is developed.
• B)new markets open up as trade barriers are reduced.
• C)prices of inputs in the production process increase.
• D)substitutes for the industry's output cease to be produced.
• E)market demand increases.

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Definitions:

Coefficient of Variation

A measure of relative variability that expresses the standard deviation as a percentage of the mean.

Hourly Wages

Compensation or earnings calculated by the hours worked.

Variance

A measurement of the spread between numbers in a data set, indicating how much the numbers differ from the mean of the set.

Standard Deviation

A metric for assessing how much the data points differ or spread out in a collection of values.