FIGURE 12- 3 -Refer to Figure 12- 3. Comparing the Monopoly Equilibrium to Monopoly

question 9

Multiple Choice

FIGURE 12- 3
-Refer to Figure 12- 3. Comparing the monopoly equilibrium to the perfectly competitive equilibrium, the area P2P3CB represents

• A) the net loss in the monopolist's profits.
• B) the dead- weight loss of monopoly.
• C) the net gain in the monopolist's profits.
• D) a redistribution of income from the monopolist to the consumer.
• E) a redistribution of income from consumers to the monopolist.

---

Definitions:

Rule of 5

A guideline in statistics that suggests if the sample size is smaller than 5, certain statistical methods, such as normal approximation, may not be reliable.

Expected Values

The mean of a probability distribution, representing the average outcome one can expect to see.

Null Hypothesis

A statement used in statistics that suggests there is no significant difference or effect, serving as the default assumption to be tested.

Chi-Squared Test

A statistical test used to determine whether there is a significant difference between the expected frequencies and the observed frequencies in one or more categories.