In a Controlled Experiment, Rosenthal and Jacobson (1968) Informed Grade

question 22

Multiple Choice

In a controlled experiment, Rosenthal and Jacobson (1968) informed grade school teachers that some of their students (called "bloomers") would show great academic improvement in the upcoming year. In reality, the "bloomers" were chosen randomly by the researchers, and were no smarter than any of the other students. Which of the following best describes the results of this study? At the end of the year, __________.

• A) bloomers and non-bloomers performed equally well on an IQ test
• B) bloomers improved more on an IQ test than did non-bloomers
• C) non-bloomers improved more on an IQ test than did bloomers
• D) there were no IQ differences between bloomers and non-bloomers, but the bloomers were more interested in school

Grasp the role of contribution margin and contribution margin ratio in making product-related decisions.

Identify the factors influencing make or buy decisions.

Recognize the significance of opportunity costs and sunk costs in business decisions.

Understand the importance of effectively managing bottleneck operations to maximize production efficiency.

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Definitions:

MC

Short for Marginal Cost, it refers to the change in total cost that arises when the quantity produced is incremented by one unit.

MR

Marginal Revenue, the additional income that is gained from selling one more unit of a good or service.

Purely Competitive Seller

A seller operating in a market where there are many buyers and sellers, no barriers to entry, and products are homogenous, leading to perfect competition.

Total Fixed Cost

The sum of all costs that do not change with the level of output, such as rent, salaries, and insurance premiums.