If a Potato Farmer Expands Output, He Finds That the Increase

question 61

Multiple Choice

If a potato farmer expands output, he finds that the increase in total revenue is less than the increase in total costs. This means that:

• A) profit is being maximized.
• B) he should not have expanded output.
• C) he should produce even more output.
• D) the firm is wasting resources.

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Definitions:

F-Test

A statistical test used to compare two variances and determine if they are significantly different from each other.

ANOVA

Short for "Analysis of Variance," a statistical method used to compare the means of three or more samples to assess if at least one of the means is significantly different from the others.

Means Differ

A term indicating that there is a statistical difference between the averages of two or more groups.

LSAT Scores

These are the results from the Law School Admission Test, which is a standardized test used for admissions into law schools in the United States and several other countries.