We _____ When Calculating the Average of Deviations from the Mean

question 66

Multiple Choice

We _____ when calculating the average of deviations from the mean, because the sum of all deviation scores around the mean equals zero.

• A) take the absolute value of the scores
• B) square the scores
• C) divide by N
• D) take the square root

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Definitions:

Average Costs

The total cost of production divided by the number of units produced, representing the cost per unit of output.

Returns to Scale

The variation in production output resulting from a proportional alteration of all input factors in the manufacturing process.

Constant-Cost Industry

An industry in which the input prices and production costs remain constant as the industry output changes.

Long-Run Equilibrium

A state in which all firms in an industry are producing at their minimum long-run average cost and are earning normal profits.