Consider the Following to Answer the Question(s) Below

question 12

Multiple Choice

Consider the following to answer the question(s) below.
A consumer research group is interested in how older drivers view hybrid cars. Specifically, they wish to assess the percentage of drivers in Canada 50 years of age or older who intend to purchase a hybrid in the next two years. Suppose that they selected a systematic sample from a list of CARP (Canadian Association of Retired Persons) members. Based on this sample, they estimated the percentage to be 17%.
-The sampling frame for this study is

• A) all drivers in Canada 50 years of age or older.
• B) 17%.
• C) the list of CARP members.
• D) how older drivers view hybrid cars.
• E) 83%.

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Definitions:

Diseconomies of Scale

A situation in which a firm experiences an increase in average costs due to an increase in its size or output level, often resulting from inefficiencies and higher per unit costs.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Demand Curves

Visual diagrams that illustrate the connection between a product's price and the amount consumers are willing to buy.

MC = MR

An economic principle that firms reach the optimal level of production when marginal cost equals marginal revenue.