The Following Is a Frequency Distribution of the Monthly Expenditures

question 97

Multiple Choice

The following is a frequency distribution of the monthly expenditures for gasoline of 400 households in Chattanooga. $\begin{array}{|c|c|r|}\hline\text { Class } & \text { Expenditure \$) } & \text { \# of households } \\\hline 1 & 0 \text { and under } 20 & 84 \\\hline 2 & 20 \text { and under 40 } & 128 \\\hline 3 & 40 \text { and under } 60 & 68 \\\hline 4 & 60 \text { and under } 80 & 56 \\\hline 5 & 80 \text { and under } 100 & 40 \\\hline 6 & 100 \text { and over } & 24\\\hline\end{array}$ What is the cumulative relative frequency of the 3rd class?

• A) .17
• B) .53
• C) .66
• D) .70

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Definitions:

Nondiscriminating Monopolist

A monopolist who charges all consumers the same price for its product, rather than altering the price based on consumer demand or attributes.

Pure Monopolist

A type of market where there is only one seller providing a unique product or service, with no close substitutes.

Maximize Profits

Maximizing profits is the primary goal of most firms and involves strategies and decisions aimed at increasing the difference between total revenues and total costs.

Nondiscriminating Pure Monopolist

A monopolist that charges all consumers the same price for its product, despite potential differences in the market.