A Lab Orders 100 Rats a Week for Each of the 52

question 110

Multiple Choice

A lab orders 100 rats a week for each of the 52 weeks in the year for experiments that the lab conducts. Suppose the mean cost of rats used in lab experiments turned out to be $13.00 per week. Interpret this value.

• A) The median cost for the distribution of rat costs is $13.00.
• B) The expected or average cost for all weekly rat purchases is $13.00.
• C) The rat cost that occurs more often than any other is $13.00.
• D) Most of the weeks resulted in rat costs of $13.00.

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Definitions:

Deadweight Loss

The decrease in economic effectiveness when a product or service fails to achieve or cannot attain its balance point.

Cheesecake

A sweet dessert consisting of one or more layers, primarily a thick layer of cream cheese and egg mixture set atop a base made from crushed cookies, crackers, or sponge cake.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to market stability where there is no excess supply or demand.

Consumption Tax

A tax on the spending on goods and services purchased by consumers.