The Figure Given Below Shows the Demand Curves of Two

question 8

Multiple Choice

The figure given below shows the demand curves of two classes of buyers, for tickets to a football match.Figure 11.4
D₁: Demand curve of group 1
D₂: Demand curve of group 2
MR₁: Marginal revenue of group 1
MR₂: Marginal revenue of group 2
MC: Marginal cost
-The perfectly competitive market structure results in economic efficiency because:

• A)price is equal to marginal revenue in the short run.
• B)firms are producing at the minimum point of the average-total-cost curve in the short run.
• C)a normal profit is being earned in the long run.
• D)a normal profit is being earned in the short run.
• E)in the long-run, price is equal to marginal cost and minimum average-total-cost.

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Definitions:

Test Statistic

A value calculated from sample data during a hypothesis test. It is used to determine whether to reject the null hypothesis.

Nonrejection Region

The range of values in hypothesis testing for which the null hypothesis is not rejected, indicating no statistical significance difference.

Z.TEST

A statistical test used to determine whether there is a significant difference between a sample mean and a known population mean, assuming a normal distribution.

P-Value

In statistical hypothesis testing, the probability that the observed data could have occurred by random chance if the null hypothesis is true.