The Data Shown Below Represents the Annual Salaries, in Thousands

question 23

Multiple Choice

The data shown below represents the annual salaries, in thousands of dollars, of the top five paid individuals in your university.
{180,190,205,210,300}
Increasing each salary by $25,000 would have what effect on the standard deviation of the salaries?

• A) Increase the standard deviation by $25,000.
• B) Increase the standard deviation by $5,000.
• C) No increase to the standard deviation.
• D) There is not enough information to answer the question.
• E) None of the above.

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Definitions:

MC

Stands for Marginal Cost, which is the cost of producing one additional unit of a good or service.

ATC

Average Total Cost, which is the total cost per unit of output incurred when producing goods or services. It includes both fixed and variable costs.

MR

An abbreviation for Marginal Revenue, which is the additional income from selling one more unit of a good or service.

Long-Run Equilibrium

A situation in a market where supply equals demand, and all factors of production - including labor and capital - are fully utilized, leading to stable prices.