Gamma Corp

question 105

Essay

Gamma Corp. manufactures and sells widgets for $6.00 each. Therefore, its total revenue, TR, from the sale of X widgets in a year is TR = $6X
It costs Gamma $2 for materials and labour to produce each widget. In addition, Gamma expects to incur $80,000 of other costs during a year. Therefore, Gamma's total costs for the year, TC, are expected to be
-720TC = $2X + $80,000
Gamma's expected net income, NI, for the year will be
NI = TR - TC
= $6X - ($2X + $80,000)
= $4X - $80,000
a) What is the slope and TR-intercept of a TR vs. X plot?
b) What is the slope and TC-intercept of a TC vs. X plot?
c) What is the slope and NI-intercept of an NI vs. X plot?
d) Which of the three plotted lines is steepest?
e) How much does NI increase for each widget sold?
f) If Gamma were able to reduce its materials and labour cost to $1.75 per widget, state for each plotted line whether its slope would increase, decrease, or remain unchanged.

Recognize the significance of different statistical measures (mean, median, mode, distribution) in research.

Appreciate the role of informant reports and behaviors in personality research.

Understand the concept of triangulation in research methodology.

Comprehend the significance of normal distribution in statistical analysis.

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Definitions:

Gesticulation

The use of motions of the limbs or body as a means of expression, often accompanying speech or to convey messages non-verbally.

Crowd Behavior Coding System

A methodological tool used to systematically observe and categorize the behaviors and patterns exhibited by crowds in various settings.

Normative Processes

The establishment of standards or norms that guide the behavior of individuals within a group or society.

Milgram's Study

A series of social psychology experiments conducted by Stanley Milgram, which measured the willingness of study participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.