Twenty-One Executives in a Large Corporation Were Randomly Selected to Study

question 118

Multiple Choice

Twenty-one executives in a large corporation were randomly selected to study the effect of several factors on annual salary (expressed in $000s) . The factors selected were age, seniority, years of college, number of company divisions they had been exposed, to and the level of their responsibility. The results of the regression analysis follow: Which one of the following is the dependent variable?

• A)Age
• B)Seniority
• C)Level of responsibility
• D)Annual salary

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Definitions:

Economic Profits

The surplus left after a firm has paid all its costs, including both explicit costs like wages and rent and implicit costs like the opportunity costs of capital.

Monopolistic Competitor

Refers to a market structure where many companies sell products that are similar but not identical, allowing them some power to set prices.

Profit

Profit is the financial gain realized when the amount earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Product Promotion

Various marketing strategies and tactics used to increase awareness, interest, and sales of a product.