If PA) = 0

question 101

Multiple Choice

If PA) = 0.25, PA│Y) = 0.35, and PA│X) = 0.10, then events A and Y

• A) are independent
• B) are dependent
• C) could be either independent or dependent, depending on the value of Y
• D) could be either independent or dependent, depending on the value of X

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Definitions:

Demand Curve

A diagram illustrating the link between the cost of an item and the desired quantity by buyers.

Purely Competitive Firm

A company operating in a market where there are many buyers and sellers, the products are homogenous, and there is free entry and exit in the market.

Average Revenue

The revenue per unit of output sold, calculated by dividing total revenue by the number of units sold.

Marginal Revenue

The additional revenue that is gained from selling one more unit of a good or service.