If Option a Costs $40 and Yields 20 Units of Output,and

question 65

Multiple Choice

If Option A costs $40 and yields 20 units of output,and Option B costs $50 and yields 20 units of output,

• A) Option B and Option A are equally economically efficient.
• B) Option B is economically efficient relative to Option A.
• C) Option A is economically efficient relative to Option B.
• D) It is not possible to determine which option is more economically efficient.

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Definitions:

Sign Test Statistic

A sign test statistic is used in non-parametric statistics to determine if two dependent samples come from the same distribution, focusing on the direction of changes rather than their sizes.

Distribution

Refers to the way in which something is shared out among a group or spread over an area.

Sign Test Statistic

A non-parametric statistical test used to evaluate the consistency of results with a hypothesized median by considering only the signs of the differences, not their magnitude.

Normally Distributed

Describes a dataset that follows a Normal distribution pattern, showcasing a bell-shaped curve when plotted.