Refer to the Following Probability Distribution for Profit to Answer $$\begin{array} { c c } \text { Prafit } & \text { Prabability } \\\hline \$ 30 &0 .05 \\40 & 0 .25 \\50 & 0.60 \\60 & 0.10\end{array}$$

question 42

Multiple Choice

Refer to the following probability distribution for profit to answer the question below: $$\begin{array} { c c } \text { Prafit } & \text { Prabability } \\\hline \$ 30 &0 .05 \\40 & 0 .25 \\50 & 0.60 \\60 & 0.10\end{array}$$ What is the expected profit for this distribution?

• A)$11,875
• B)$46
• C)$47.50
• D)$48.75
• E)none of the above

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Definitions:

Purely Competitive Firm

A firm that operates in a market where there are many buyers and sellers, all products are identical, and there are no barriers to new firms entering the market.

Vertical Axis

The “up-down” or “north-south” measurement line on a graph or grid.

Marginal Revenue

The financial gain from disposing of one extra unit of a product or service.

Average Revenue

The amount of income generated per unit of sale or the total income divided by the number of units sold.