-The Above Figure Shows the Demand and Cost Curves for a Firm

question 4

Multiple Choice

-The above figure shows the demand and cost curves for a firm in monopolistic competition in the long run. The firm maximises its profit by

• A) producing 8 units and charging a price of $5.
• B) producing 4 units and charging a price of $15.
• C) producing 16 units and charging a price of $10.
• D) None of the above answers is correct.

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Definitions:

Parametric Tests

Statistical tests that make assumptions about the parameters of the distribution(s) from which one's data are drawn.

Wilcoxon Rank Sum Test

A nonparametric statistical hypothesis test used for comparing two independent samples to assess whether their population mean ranks differ.

Un-standardized Test Statistic

An un-standardized test statistic measures the degree of deviation from the null hypothesis without adjusting for scale or variability in the data.

Standardized Test Statistic

A value calculated from sample data that is used to assess the viability of a null hypothesis in the context of a significance test.