TABLE 10-3
the Use of Preservatives by Food Processors

question 8

Multiple Choice

TABLE 10-3
The use of preservatives by food processors has become a controversial issue. Suppose 2 preservatives are extensively tested and determined safe for use in meats. A processor wants to compare the preservatives for their effects on retarding spoilage. Suppose 15 cuts of fresh meat are treated with preservative I and 15 are treated with preservative II, and the number of hours until spoilage begins is recorded for each of the 30 cuts of meat. The results are summarized in the table below.
$$\begin{array} { l l } \text { Preservative \(A\) }& \text { Preservative \(B\) }\\\bar{X} _ { I } = 106.4 \text { hours } & \bar{X} _ { \text {II } } = 96.54 \text { hours } \\S _ { I } = 10.3 \text { hours } & S _ { \text {II } } = 13.4 \text { hours }\end{array}$$
-Referring to Table 10-3, suppose ? = 0.05. Which of the following represents the correct conclusion?

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Definitions:

Long-run Equilibrium

A state in economics where all factors of production are fully adjustable, and markets or industries have adjusted to their optimal production levels and prices.

Competitive Price-searcher Market

A market in which firms have some degree of market power and can determine their prices, often through differentiation and searching for competitive advantages.

Average Total Cost

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

Competitive Price-searcher Firm

A company that sets its own prices based on its products, costs, and the competitive environment, rather than taking the market price as given.