Use the Information Below to Answer the Following Question(s)

question 21

Multiple Choice

Use the information below to answer the following question(s) .
An inspector visually inspects 10 samples of 200 computer monitors each for defects.Using trained judgement,the inspector either accepts or rejects the monitors based on whether they are flawless.The table below gives the results of these inspections from the 10 samples:

-What is the average proportion defective?

• A)0.022
• B)0.025
• C)0.018
• D)0.027

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Definitions:

Monopolistically Competitive

A type of market structure characterized by many sellers offering differentiated products, leading to competition based on product features, price, and quality.

Profit

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Price

The sum of money anticipated, demanded, or provided as compensation for something.

Long-run Equilibrium

A state in which economic forces such as supply and demand are balanced, and all adjustments to economic conditions have been made, often characterized by firms earning normal profit in perfectly competitive markets.