The Board of Directors of a Corporation Has Agreed to Allow

question 73

Essay

The board of directors of a corporation has agreed to allow the human resources manager to move to the next step in planning day care service for employees' children if the manager can prove that at least 25% of the employees have interest in using the service. The HR manager polls 300 employees and 90 say they would seriously consider utilizing the service. At the $\alpha$ = .10 level of significance, is there enough interest in the service to move to the next planning step?

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Definitions:

Long-run Equilibrium

A state in market-based economies where all factors of production are fully utilized, leading to no further economic incentive for reallocation.

Minimized Average Total Cost

The point at which a firm achieves the lowest possible cost per unit of production by optimizing the scale of production.

Price

The amount of money required to purchase a good or service, often determined by supply and demand dynamics.

Long-run Equilibrium

A situation in competitive markets where all firms have adjusted to a state where there is no incentive to enter or exit the market, and economic profits are zero.