Using Excel, the Manager of Quick Breaks Coffees Has Estimated

question 40

Multiple Choice

Using Excel, the manager of Quick Breaks Coffees has estimated the daily demand function for its regular coffees; the results are shown in the table above. Which of the following statements is correct?

• A)The manager can be 95 percent confident that the true slope coefficient for price is positive.
• B)The manager can be 95 percent confident that the true slope coefficient for price lies between - 24.01 and - 20.96.
• C)The manager can be 95 percent confident that the true slope coefficient for price is greater than - 24.01.
• D)The manager can be 95 percent confident that the true slope coefficient for price is equal to zero.

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Definitions:

Monopolistically Competitive

A market structure featuring many firms selling products that are similar but not identical, allowing for some degree of market power and price setting.

Long Run

A period in economics during which all factors of production and costs are variable, allowing firms to adjust all inputs.

Deli

A short form for delicatessen, which is a store or counter specializing in prepared foods, sandwiches, and specialty groceries.

Zero Economic Profits

A condition in perfect competition where firms earn just enough revenue to cover their total costs, leading to no supernormal profit in the long term.