If a Perfectly Competitive Firm Has a 70 Percent Probability

question 129

Multiple Choice

If a perfectly competitive firm has a 70 percent probability of a high demand of $5 and a 30 percent chance of a low demand of $4, what is the firm's expected marginal revenue?

• A)$3.50
• B)$4.50
• C)$4.70
• D)$1.20

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Definitions:

Common Manager

A role within organizations tasked with overseeing and directing the day-to-day operations and administrative functions.

Organization Chart

A diagram that displays the structure of an organization and the relationships and relative ranks of its parts and positions/jobs.

Formal Communication Channels

The official pathways for information flow within an organization, typically through documented means such as memos, emails, and meetings.

Division Of Labour

The assignment of different parts of a manufacturing process or task to different people in order to improve efficiency and productivity.