If a Perfectly Competitive Seller Is Maximizing Profit and Is

question 74

Multiple Choice

If a perfectly competitive seller is maximizing profit and is making zero economic profit,which of the following will this seller do?

• A) go to work in the next-best earning opportunity
• B) shut down, with a loss equal to total fixed cost
• C) continue at the current output, making zero economic profit
• D) increase production in order to make an economic profit
• E) remain open but decrease production in order to make an economic profit

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Definitions:

Rejection Region

In hypothesis testing, the set of values that leads to the rejection of the null hypothesis in favor of the alternative hypothesis.

Kruskal-Wallis Test

A nonparametric statistical test used to compare three or more groups based on ranked data.

Wilcoxon Rank Sum Test

A nonparametric test that determines whether two independent samples come from the same distribution by comparing their ranks.

Population Location

Refers to the geographical distribution of members of a population across different areas.