The Shape of the Normal Probability Distribution Is Determined by the Population

question 14

True/False

The shape of the normal probability distribution is determined by the population standard deviation $\sigma$ . Small values of $\sigma$ reduce the height of the curve and increase the spread; large values of $\sigma$ increase the height of the curve and reduce the spread.

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Definitions:

MC > ATC

Denotes a situation in which the marginal cost of producing an additional unit of a good is greater than the average total cost, implying that producing more of the good will increase the per unit cost.

Positive Profits

When a company or business generates earnings that exceed its costs and expenses, resulting in a net gain.

Market Price

The prevailing rate at which a good or service is available for purchase or sale on the open market.

Profit-maximizing

The process by which a firm chooses its production level and pricing to achieve the highest possible profit given its cost structure and market demand.