Joe Is Considering Pursuing an MBA Degree

question 69

Multiple Choice

Joe is considering pursuing an MBA degree. He has applied to two different universities. The acceptance rate for applicants with similar qualifications is 25 percent for University A and 40 percent for University B. What is the probability that Joe will be accepted at University A and rejected at University B?

• A) 0.10
• B) 0.85
• C) 0.15
• D) 0.25
• E) 0.65

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Definitions:

Marginal Revenue

The increase in revenue resulting from the sale of one additional unit of product.

Demand Schedule

A table that shows the quantity of a good or service demanded at different prices.

Natural Monopolist

A single firm that can supply a good or service to an entire market at a lower cost than could two or more firms, leading to a natural monopoly situation.

LRAC Curve

The Long-Run Average Cost curve, showing the lowest average cost at which a firm can produce any given level of output in the long run when all inputs are variable.