The Variable Home Ownership Can Take on One of Two

question 102

True/False

The variable Home Ownership can take on one of two values,1 if the person living in a home owns the home and zero if the person living in a home does not own the home.This is an example of a discrete random variable.

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Definitions:

Long-Run

A period of time in economics where all factors of production and costs are variable, allowing full adjustment to market changes.

Short-Run

A period of time during which at least one input, such as plant size, cannot be changed; contrasts with the long-run where all inputs are variable.

Marginal Cost

Marginal cost is the additional cost incurred from producing one extra unit of a good or service, an important concept in economics for determining optimal production levels.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the quantity of output, a key factor in pricing and profitability analyses.