A Study of the Effects of a Chemical Additive on Soil

question 39

Multiple Choice

A study of the effects of a chemical additive on soil acidity recorded the soil acidity of eight plots of land before and after the application of the additive. The results were:

$\begin{array}{|l|l|l|l|l|l|l|l|l|}\hline \text { Plot } & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 \\\hline \text { Before } & 10 & 8 & 9 & 7 & 8 & 6 & 9 & 11 \\\hline \text { After } & 8 & 7 & 7 & 8 & 6 & 6 & 8 & 8 \\\hline & & & & & & & & \\\hline\end{array}$


The test value for the sign test is:

• A) 1
• B) 2
• C) 3
• D) 4

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Definitions:

Competitive Firm

A business that operates in a market where it must compete against other firms for customers and resources.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, representing the additional gain above the next best alternative investment.

Marginal Revenue

The rise in income generated by selling an extra unit of a product or service.

Maximizing Profit

The process of making business decisions that increase a firm's earnings to its highest possible level.