Instruction 2 -Referring to Instruction 2

question 98

Multiple Choice

Instruction 2.4
The following are the durations in minutes of a sample of long-distance phone calls made within Australia reported by one long-distance carrier.
$$\begin{array} { | l | l | } \hline \text { Time (in Minutes) } & \text { Relative Frequency } \\\hline0 \text { but less than 5 } & 0.37 \\\hline 5 \text { but less than 10 } & 0.22 \\\hline \begin{array} { l } 10 \text { but less than } \\15\end{array} & 0.15 \\\hline \begin{array} { l } 15 \text { but less than } \\20\end{array} & 0.10 \\\hline \begin{array} { l } 20 \text { but less than } \\25\end{array} & 0.07 \\\hline \begin{array} { l } 25 \text { but less than } \\30\end{array} & 0.07 \\\hline 30 \text { or more } & 0.02 \\\hline\end{array}$$
-Referring to Instruction 2.4,what is the width of each class?

• A) 5 minutes
• B) 100%
• C) 2%
• D) 1 minute

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Definitions:

Law of Diminishing Returns

The principle that adding more of one factor of production, while keeping others constant, will eventually yield lower per-unit returns.

Economic Profit

The surplus remaining after deducting both explicit and implicit costs from total revenues, emphasizing a firm's financial performance beyond just its accounting profit.

Accounting Profit

Accounting profit is the monetary gain calculated by subtracting total explicit costs from total revenue.

Sunk Cost

A cost that has already been incurred and cannot be recovered, and therefore should not affect current and future business decisions.