If Distribution a and Distribution B Have the Same Mean

question 8

Multiple Choice

If distribution A and distribution B have the same mean but A has a larger standard deviation, we may conclude that________.

• A) the medians of both distributions would be the same.
• B) distribution B has a range of 0.
• C) A has a greater degree of variation.
• D) distribution B displays more variety.

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Definitions:

Short Run

A period in economics during which some factors, like capital, are fixed and cannot be changed, emphasizing immediate effects.

Price-Taker

A price-taker is a market participant that cannot influence the price of a good or service and must accept the prevailing market price.

Price-Maker

An entity, such as a firm, that has the ability to influence the price of goods or services it sells, typically due to lack of competition.

Perfect Competitor

A theoretical market structure where many firms sell identical products, with no single seller able to influence market prices, ensuring maximum efficiency.