A Business Owner Recorded Her Annual Profits for the First

question 20

Multiple Choice

A business owner recorded her annual profits for the first 12 years since opening her business.The stem-and-leaf display below shows the annual profits in thousands of dollars.
Key:
9 | 8 = $98,000 profit

• A)The distribution of the business owner's profits is skewed to the left,and is multimodal,with gaps in between.Five years the business had profits near $90,000,another four years the business had profits near $60,000,and three years the business had profits near $30,000.
• B)The distribution of the business owner's profits is skewed to the left,and is multimodal,with gaps in between.Five years the business had profits near $100,000,another four years the business had profits near $70,000,and three years the business had profits near $40,000.
• C)The distribution of the business owner's profits is skewed to the right,and is unimodal,with gaps in between.The centre is at around $70,000.
• D)The distribution of the business owner's profits is skewed to the right,and is multimodal,with gaps in between.Five years the business had profits near $100,000,another four years the business had profits near $70,000,and three years the business had profits near $40,000.
• E)The distribution of the business owner's profits is skewed to the left,and is unimodal,with gaps in between.The centre is at around $70,000.

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Definitions:

Average Total Cost

Is calculated by dividing the total cost of production by the total quantity produced.

Economic Profit

The remaining amount after all explicit and implicit costs are deducted from the entire revenue.

Technological Breakthrough

A significant innovation or discovery that dramatically advances technology or improves processes and products.

Profit-Maximizing Monopolist

A monopolist entity that aims to maximize its profits by setting prices where marginal costs equal marginal revenues, given its unique market power.