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The quality control technician grew weary of measuring pistons that came off the line, so he decided to make a fixture that would tell him whether the piston fell within product specifications. The fixture had two holes, one the exact width of the upper specification (24 cm) and one slightly smaller than the lower specification (21 cm). If the piston fit through the smaller hole, it would be too small and therefore rejected. If the piston didn't fit through the larger hole, it was too large and would be rejected. Just to test his idea, he used the traditional measurement system and his new system on the next eight samples. The data and the two charts he constructed are shown below. Why aren't the plotted points forming similar shapes between the two graphs? Evaluate the advantages and disadvantages of his proposed system.
Oligopolistic
Pertaining to a market structure characterized by a small number of firms controlling a large portion of the market share.
Market Structure
The organizational and other characteristics of a market that influence the nature of competition and pricing, such as the number of firms, product uniformity, and ease of entry.
Dominant Firms
Companies that possess a major share of the market, exerting significant control or influence over prices, production, or innovation within the industry.
Sherman Act
A basic antitrust legislation in the United States that outlaws practices leading to monopolies and encourages competitive conduct.
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