A Study in the Los Angeles Times Reported That the Number

question 52

Multiple Choice

A study in the Los Angeles Times reported that the number of liquor stores in a neighborhood has a strong positive linear association with the amount of crime in that neighborhood. What can you determine about the relationship between the number of liquor stores and the amount of crime?

• A)No conclusions can be drawn without seeing a scatterplot of the data.
• B)People who live in neighborhoods with more liquor stores commit more crimes.
• C)Neighborhoods with a higher number of liquor stores tend to have a higher amount of crimes.
• D)If we decrease the number of liquor stores in a neighborhood, the amount of crimes will decrease.

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Definitions:

Mutual Interdependence

A situation in economics where the actions and decisions of one firm directly influence, and are influenced by, the actions and decisions of other firms within the same market.

Oligopolistic Industries

Oligopolistic industries are characterized by a market structure in which a small number of firms have large control over market share, leading to limited competition and significant influence over prices and products.

Dominant Firms

Companies that hold a large market share within their industry, influencing market conditions and prices.

Entry Barriers

Obstacles that prevent or hinder potential competitors from entering a market or industry.