Correlations Allow Us to

question 139

Multiple Choice

Correlations allow us to

• A) determine causation.
• B) demonstrate statistical significance.
• C) make predictions.
• D) generalize to large samples.

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Definitions:

Natural Monopoly

A situation in which a single firm can produce the entire market output at a lower cost than could several firms, making it most efficient for a single firm to serve the entire market.

Average Total Cost

The total cost of production divided by the total quantity of output produced.

Legal Cartel Theory

A concept where regulations permit or create conditions for the existence of cartels, which are agreements between competing firms to control prices or markets.

Public Interest Theory

Suggests that regulations are supplied in response to the demand of the public for the correction of inefficient or inequitable market practices.