A Perfectly Competitive Firm Has a Random Demand with a 90

question 148

Multiple Choice

A perfectly competitive firm has a random demand with a 90 percent chance of being $100, a 5 percent chance of $90, and a 5 percent chance of being $80. What is the firm's expected marginal revenue?

• A)$96.40
• B)$92.75
• C)$98.50
• D)$90.50

---

Definitions:

Musculocutaneous Nerve

The musculocutaneous nerve is a major peripheral nerve of the upper limb, primarily responsible for the innervation of the biceps muscle and sensation to the forearm.

Biceps Brachii

A muscle located in the upper arm, responsible for flexing the elbow and rotating the forearm.

Deltoid

A large, triangular muscle covering the shoulder joint, involved in lifting and rotating the arm.

Teres Minor

One of the four rotator cuff muscles in the shoulder, aiding in rotation and stabilization of the humerus.