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A firm sells its output for $49.95 per unit and has a total fixed cost of $31,450. If this firm’s total cost and revenue functions are linear and its average variable cost of $55.25, how much output must the firm produce to break even?
Garaci et al. (2012) examined a sample of people with and without multiple sclerosis (MS) to test the controversial idea that the disease is caused by blood flow restriction resulting from a vein condition known as chronic cerebrospinal venous insufficiency (CCSVI). Of 39 randomly sampled patients with MS, 25 were found to have CCSVI and 14 were not. Of 26 healthy control subjects, 14 were found to have CCSVI and 12 were not. The researchers found an association between CCSVI and MS. a. What is the explanatory variable, and what is the response variable? b. Is this an experimental study or an observational study? c. Where might hypothesis testing have been used in the study?
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