A Perfectly Competitive Firm Has a Random Marginal Cost with a 20

question 80

Multiple Choice

A perfectly competitive firm has a random marginal cost with a 20 percent chance of a high marginal cost of $20 and an 80 percent chance of a low marginal cost of $5. What is the firm's expected marginal cost?

• A)$12
• B)$10
• C)$8
• D)$7

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Definitions:

Repatriation

The process of returning to one's country of origin or citizenship after living abroad.

International Assignment

A work task or role assigned to an employee which involves working in a different country from their home or regular office location.

Codetermination

A practice where workers have a role in company management decisions, typically through participation on corporate boards.

Expatriate Manager

A manager who is working in a country different from their native country, often for a predetermined period.