A Perfectly Competitive Firm Has a Random Marginal Cost with a 60

question 70

Multiple Choice

A perfectly competitive firm has a random marginal cost with a 60 percent chance of a high marginal cost of $100 and a 40 percent chance of a low marginal cost of $90. What is the firm's expected marginal cost?

• A)$96
• B)$92
• C)$94
• D)$98

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Definitions:

Metatarsals

The long bones located in the foot between the ankle and the toes, crucial for weight bearing and movement.

Phalanges

The bones in the fingers and toes of the human body, playing essential roles in movement and dexterity.

Metacarpals

The five elongated bones linking the wrist to the fingers in the hand.

Carpals

The eight small bones forming the wrist that connect the hand to the forearm.