The Company Financial Officer Was Interested in the Average Cost

question 128

Multiple Choice

The company financial officer was interested in the average cost of PCs that had been purchased in the past six months.A random sample of the price of 10 computers was taken with the following results (mean = $3,213) : $3,250,$1,127,$2,995,$3,250,$3,445,$3,449,$1,482,$6,120,$3,009,$4,000 What is the variance?

• A)1359
• B)4993
• C)1846575
• D)3587
• E)1976454

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Definitions:

Short-Run Adjustments

Refers to the changes firms make in response to changing market conditions in the short term when at least one production factor is fixed.

Oligopolists

Firms that are part of an oligopoly, a market structure with a small number of firms dominating the market, leading to limited competition.

Inverted-U Theory

A theoretical concept suggesting that a variable's effect on a particular outcome increases to a point but then begins to decrease as the variable continues to increase.

Market Structures

The organizational and other characteristics of a market that significantly affect the nature of competition and pricing within that market.