Use the Following to Answer Questions

question 239

Multiple Choice

Use the following to answer questions:
Figure: Water Works
-(Figure: Water Works) Look at the figure Water Works, which describes a small town's water works, a natural monopoly. If regulators require the water works to charge the price that eliminates deadweight loss, consumer surplus will be:

• A) $1,600.
• B) $1,400.
• C) $1,000.
• D) $800.

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Definitions:

Standard Deviations

A measure of the amount of variation or dispersion of a set of values, indicating how much the values in the set depart from the mean.

Z-Scores

Standardized scores that indicate by how many standard deviations an element is from the mean.

Z-Score

Another term for standard score, indicating the number of standard deviations a data point is from the mean of its distribution.

Standard Deviations

A statistical measure that quantifies the amount of variation or dispersion of a set of data values.