A Perfectly Competitive Firm Has a Random Marginal Cost with a 30

question 170

Multiple Choice

A perfectly competitive firm has a random marginal cost with a 30 percent chance of a high marginal cost of $50 and a 70 percent chance of a low marginal cost of $40. What is the firm's expected marginal cost?

• A)$45
• B)$48
• C)$46
• D)$43

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Definitions:

Canal Building

The construction of artificial waterways designed for the passage of boats or ships, irrigation, or water supply, playing a critical role in trade and transportation history.

National Railroad System

denotes a network of railway lines that span a nation, connecting various cities and regions, facilitating the transport of people and goods across the country.

Track Width

The distance between the rails on a railway track, significant for the stability and safety of train operations.

Labor Political Parties

Political groups that represent the interests of workers and are often associated with advocating for labor rights, fair wages, and social justice.