THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 75

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
It is estimated that 1.3% of all items produced on an assembly line have some form of defect.You randomly select 60 items for inspection.
-An advertisement claims that four out of five doctors recommend a particular product.A consumer group wants to test that claim,and takes a random sample of 30 doctors.The consumer group finds that of this group of doctors,only 0.75 would recommend the product.What is the probability that the proportion of doctors in this sample who recommend the product is 0.75 or less? Do you have reason to doubt the manufacturer's claim? Explain.

Differentiate between monopolistic competition, perfect competition, monopoly, and oligopoly based on features such as influence on price, product differentiation, and barriers to entry.

Identify real-world examples of monopolistically competitive markets.

Recognize the role of product differentiation in enabling firms in monopolistically competitive markets to have some control over pricing.

Understand the implications of easy entry and exit in monopolistically competitive markets for firms’ competitive strategies and market power.