SCENARIO 18-4 You Decide to Predict Gasoline Prices in Different

question 121

Multiple Choice

SCENARIO 18-4 You decide to predict gasoline prices in different cities and towns in the United States for your term project.Your dependent variable is price of gasoline per gallon and your explanatory variables are per capita income, the number of firms that manufacture automobile parts in and around the city, the number of new business starts in the last year, population density of the city, percentage of local taxes on gasoline, and the number of people using public transportation.You collected data of 32 cities and obtained a regression sum of squares SSR= 122.8821.Your computed value of standard error of the estimate is 1.9549.
-Referring to Scenario 18-4, the value of adjusted is

• A)0.4576
• B)0.5626
• C)0.6472
• D)95.5414

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Definitions:

Barriers to Entry

Barriers to entry are obstacles that make it difficult for new competitors to enter a market, including high initial costs, licensing requirements, and strong brand loyalty among consumers.

Competitive Price-searcher

A market structure where firms set their prices and output levels to compete for consumers in a market with many sellers and product differentiation.

Long-run Equilibrium

A state in which all aspects of the market, including supply, demand, and price, are stabilized over time, allowing for full adjustment to any economic changes.

MR = MC

This equation represents the profit-maximizing condition in economics where marginal revenue (MR) equals marginal cost (MC), often used to determine the optimal level of output.