-What Is the Coefficient of Variation of the Outcomes?
A)

question 32

Multiple Choice

$\begin{array}{rcc}\text { OUTCONE}&\text { PROBABILITY OF OUTCONE}&\text { ASSUMIPTIONS }\\\$ 6,000 & 25 \% & \text { pessimistic } \\\$ 8,000 & 40 \% & \text { moderately successful } \\\$ 10,000 & 35 \% & \text { optimistic }\end{array}$
-What is the coefficient of variation of the outcomes?

• A) 1.29
• B) 0.19
• C) 0.44
• D) Cannot be determined with the information given

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Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, representing the surplus revenue after all costs have been accounted for.

Zero Economic Profit

Occurs when a firm's total revenue is equal to its total explicit and implicit costs, indicating no abnormal profit.

Perfectly Competitive

A market structure characterized by a large number of small firms, homogenous products, and free entry and exit, leading to the optimal distribution of resources.

Constant Returns

A condition in production where increasing the amount of inputs results in a proportional increase in outputs.