In an Effort to Identify the True Proportion of First-Year

question 33

True/False

In an effort to identify the true proportion of first-year university students who are under 18 years of age, a random sample of 500 first-year students was taken. Only 50 of them were under the age of 18. The value 0.10 would be used as a point estimate to the true proportion of first-year students aged under 18.

Understand the concepts of economies of scale, constant returns to scale, and diseconomies of scale.

Identify how changes in output affect long-run average total cost.

Calculate average fixed, variable, and total costs given specific data.

Analyze the effect of scale on production costs in both the short run and long run.

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Definitions:

Marginal Social Benefits

The additional benefits to society as a whole from producing one more unit of a good or service.

Socially Optimal Level

The level of output or activity where the benefits to society are maximized, taking into account both private and external costs and benefits.

Marginal Private Benefits

The additional satisfaction or utility gained by a consumer or firm from consuming or producing one more unit of a good.

Positive Externalities

Benefits that are enjoyed by a third-party or the society at large, as a result of an economic transaction.