Data Is Collected from 20 Sales People in Order to Verify

question 58

Multiple Choice

Data is collected from 20 sales people in order to verify that the more contacts made with potential
Clients, the greater the sales volume. The MegaStat printout is shown below. (or use the excel file
#contacts and sales n = 20 data only)

• A) $14,499, $69,545
• B) $14.499, $49.265
• C) $34,779, $49,265
• D) $34.78, 449.27
• E) $14.50, $69.55

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Definitions:

Marginal Cost

The amount spent on manufacturing one more unit of a product.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market. In a monopoly, the seller faces no competition, as he is the sole seller of goods with no close substitute.

Economies of Scale

Companies experience a decrease in the average cost of production as they scale up their operations, resulting in cost efficiencies.

Natural Monopoly

A market condition where due to high fixed costs or unique resources, one firm can supply the entire market more efficiently than if there were multiple firms.