Ben's Cost of Making an Additional Rocking Chair Is $75

question 145

Multiple Choice

Ben's cost of making an additional rocking chair is $75.

• A) If he sells it for a $100, his producer surplus is $25.
• B) His marginal cost is equal to $75.
• C) The marginal benefit to the consumer from the chair will be $75.
• D) Both answers A and B are correct.
• E) Both answers B and C are correct.

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Definitions:

F Distribution

A probability distribution that arises frequently as the null distribution of a test statistic, especially in the context of variance analysis or ANOVA.

Numerator

The top number in a fraction that represents the part of the whole or the dividend in division.

Test Statistic

A value calculated from sample data to evaluate a hypothesis about a population parameter.

Sample Variance

A statistical measure of the dispersion or variability within a sample dataset.