The Following Data Show the Total Output for a Firm

question 23

Multiple Choice

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital.When answering the questions,you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100.
TABLE 7-4
-Refer to Table 7-4.The average total cost for 250 units of output is approximately

• A)33 cents.
• B)40 cents.
• C)63 cents.
• D)80 cents.
• E)$1.00.

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Definitions:

Degrees Of Freedom

The number of independent pieces of information on which a statistical estimate is based, minus the number of parameters estimated.

T Procedure

A statistical method used to infer the mean of a small sample size when the population variance is unknown.

Transform The Data

The process of applying a mathematical modification to data in order to make it more suitable for analysis.

Not Normal

Refers to data that does not follow a normal distribution, which can impact the choice of statistical tests.