Suppose You Got 75 Items Correct on a 100-Item, Six

question 41

Multiple Choice

Suppose you got 75 items correct on a 100-item, six alternative, multiple-choice exam. What would your score be after we corrected for guessing?

• A)50
• B)57
• C)63
• D)70

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Definitions:

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and insurance.

Explicit Costs

Input costs that require an outlay of money by the firm

Long-Run Equilibrium

A state where all factors of production and costs are variable, allowing firms to make adjustments leading to the ideal output level.

Profit-Maximizing

A strategic approach in which a firm determines the best output level and pricing to achieve the highest possible profit.