A Sample of Eight Observations of Variables X and Y

question 66

Essay

A sample of eight observations of variables x and y is shown below: $$\begin{array} { | l | r | r | r | r | r | r | r | r | } \hline x & 5 & 3 & 7 & 9 & 2 & 4 & 6 & 8 \\\hline y & 20 & 23 & 15 & 11 & 27 & 21 & 17 & 14 \\\hline\end{array}$$ Draw the scatter diagram and plot the least-squares line.

Understand the relationship between market structure, product variety, and consumer welfare.

Discuss the implications of free entry and exit in monopolistically competitive markets on economic profits.

Analyze how monopolistically competitive firms use advertising to influence demand elasticity and market power.

Examine the external effects of new entrants on existing firms and consumers in monopolistically competitive markets.

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Definitions:

Income Share

The proportion of total national or group income that is received by individuals, households, or classes of income earners.

Entrepreneurs

Visionary individuals who create, manage, and assume the risks of a new business venture, bringing new products or services to the market.

Production Innovations

Refers to new or improved methods of producing goods and services, which can increase efficiency and reduce costs.