Professor Crimefighter Looked at the Number of Arrests for Drunken

question 39

Multiple Choice

Professor Crimefighter looked at the number of arrests for drunken driving on the roads in 10 urban and 10 rural counties of Ontario.He found police made more arrests on roads in the rural counties.Professor Crimefighter concluded that people who live in rural areas are more likely to drive while intoxicated than are people who live in urban areas.Crimefighter's conclusion has the problem of

• A)premature closure.
• B)overextension.
• C)ecological fallacy.
• D)reductionism.
• E)spuriousness.

Describe the adjustment processes in perfectly competitive markets towards long-run equilibrium under different cost conditions.

Analyze the effects of demand changes on industry growth, prices, and firm entry or exit in the long run.

Understand how industry characteristics influence the shape of the long-run industry supply curve.

Recognize the process and outcomes of resource allocation in perfectly competitive markets.

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Definitions:

Predetermined Overhead Rate

A rate calculated before a period begins by dividing estimated manufacturing overhead costs by an allocated base, used to apply overhead costs to products.

Fixed Overhead

Costs that remain constant regardless of the amount of goods produced or sold, including items like rent, salaries, and insurance.

Work in Process

Items or materials that are partially completed in the manufacturing process, situated between raw materials and finished goods.

Finished Goods

Goods that are available for sale after completing the production process.