Exhibit 53
Use the Information Below for the Following Problem(S)

question 45

Multiple Choice

Exhibit 5.3
Use the Information Below for the Following Problem(S)
$$\begin{array} { c c } Y \text { ear } & \% \text { Price Change for CE Industries } \\\hline 2000 & 10.0 \% \\2001 & 12.0 \% \\2002 & 10.0 \% \\2003 & 11.0 \% \\2004 & 6.0 \%\end{array}$$
-Refer to Exhibit 5.3.Calculate the average annual rate of change for GB Industries for the 5 year period using the geometric mean.

• A) 9.7800%
• B) 0.0978%
• C) 9.0700%
• D) 0.0970%
• E) 3.6400%

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Definitions:

Factor Markets

Markets where resources, such as labor, capital, and land, are bought and sold.

Resource Allocation

The process of distributing available resources among various projects or business units to maximize the effectiveness and efficiency of utilization.

Perfect Competition

A market structure characterized by a large number of small firms, identical products, and free entry and exit, leading to price-takers.

Marginal Revenue Product

The extra revenue generated from employing one additional unit of a resource.