Use the Following Information to Answer the Question

question 2

Multiple Choice

Use the following information to answer the question. Suppose that a recent poll of American households about pet ownership found that for households with a pet, 39% owned exactly a dog, 33% owned a cat, and 7% owned a bird. Suppose that three households are selected randomly and with replacement.
-What is the probability that none of the three randomly selected households own a bird? (Round to the nearest hundredth)

• A)0.86
• B)0.80
• C)0.93
• D)None of these

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Definitions:

Average Total Cost

The total cost of producing a certain quantity of output divided by that quantity, indicating the per unit production cost.

Marginal Cost

The cost incurred by producing one more unit of a product, essential for decision-making in production and pricing strategies.

Perfect Competitor

An ideal market condition where numerous small firms compete against each other, and goods are sold at their marginal cost.

Long Run

A period in economic theory where all factors of production and costs are variable, allowing companies to adjust to market conditions fully.