A Perfectly Competitive Firm Has a Random Demand with a 20

question 126

Multiple Choice

A perfectly competitive firm has a random demand with a 20 percent chance of being $10, a 20 percent chance of $16, and a 60 percent chance of being $20. What is the firm's expected marginal revenue?

• A)$16.00
• B)$15.20
• C)$17.20
• D)$16.40

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