A Manufacturer of Automobile Transmissions Uses Three Different Processes

question 12

Multiple Choice

A manufacturer of automobile transmissions uses three different processes. Management ordered a study of the production costs to see if there is a difference among the three processes. A summary of the findings is shown next. In an ANOVA table,what are the degrees of freedom for the treatment source of variation?

• A)2
• B)3
• C)10
• D)27

---

Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the amount of the good that producers are willing and able to supply.

Perfectly Competitive Firms

Businesses that operate in a market where prices are dictated by supply and demand, and where no single buyer or seller has market control.

Homogeneous Products

Undifferentiated outputs; products that are identical to or indistinguishable from one another.

Price Takers

Market participants who accept the prevailing market price without having the influence to change it due to their relatively small size in the market.