Assuming Zero Transaction Cost, If Your Local Grocer Buys Oranges

question 246

Multiple Choice

Assuming zero transaction cost, if your local grocer buys oranges at a low price from an orchard and resells them to you at a higher price, then the grocer's revenue minus costs is known as

• A) arbitrage profits.
• B) transactions profits.
• C) pure profits.
• D) excess profits.

---

Definitions:

F-ratio

The F-ratio is a statistic used to compare the variance among group means in an ANOVA test, helping determine if there are any statistically significant differences between the means of three or more unrelated groups.

P-value

A statistical metric indicating the probability of observing the results of a test, or more extreme, under the assumption that the null hypothesis is true.

SSE

Sum of Squared Errors, a measure used in statistics to describe the total deviation of predicted values from the actual values in a dataset.

Class Size SS

An educational metric that refers to the number of students enrolled in a particular class or course.