Table 132 Onawy Inc Has Been Granted a Patent for Its Birch Root

question 48

Multiple Choice

Table 13.2
$\begin{array}{|c|c|c|}\hline \text { Price per Dose } & \begin{array}{c}\text { Quantity } \\\text { Demanded } \\\text { (dose) }\end{array} & \begin{array}{c}\text { Total Cost of } \\\text { Production } \\\text { (dollars) }\end{array} \\\hline \$ 80 & 0 & \$ 80 \\\hline 72 & 1 & 82 \\\hline 64 & 2 & 88 \\\hline 56 & 3 & 100 \\\hline 48 & 4 & 124 \\\hline 40 & 5 & 164 \\\hline 32 & 6 & 208 \\\hline 24 & 7 & 268 \\\hline 16 & 8 & 340 \\\hline\end{array}$
Onawy Inc. has been granted a patent for its birch root toothache balm. Table 13.2 shows the demand and the total cost schedule for the firm.
-Refer to Table 13.2.What is the economically efficient output level?

• A)5 units
• B)6 units
• C)7 units
• D)8 units

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Definitions:

Confidence

In statistics, it often pertains to the degree of certainty or probability that a parameter falls within a specified range.

Population Variance

A measure of the spread of a distribution within an entire population, indicating how much the data differ from the mean.

T Distribution

A probability distribution that emerges in the context of estimating the mean for a normally distributed population, applicable when dealing with a small sample size and the population standard deviation is not known.

Degrees of Freedom

The number of independent pieces of information available to estimate another parameter or the number of values in the final calculation of a statistic that are free to vary.