Answer the following questions based on the accompanying graph.
a.What is the change in revenues associated with the price effect for this firm when the price decreases from $50 to $30?
b.What is the change in revenues associated with the output effect for this firm when the price decreases from $50 to $30?
c.Would the firm gain revenue if it lowered the price from $50 to $30? Explain.
Definitions:
Variance
A measure of the dispersion or spread of a set of data points, calculated as the average squared deviation from the mean.
Confidence Interval
A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter with a specified degree of confidence.
Encyclopedia Salespersons
Individuals whose job is to sell printed or digital encyclopedias, often door-to-door or via direct sales techniques.
Standard Deviation
A statistical measure of the dispersion or variability of a set of data points, indicating how spread out the data points are from the mean.
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