The Probability of Event a Occurring Given That Event B

question 131

Multiple Choice

The probability of event A occurring given that event B has already occurred is 0.61. The probability of both events occurring is 0.5. What is the probability of event B occurring?

• A) 0.305
• B) 0.195
• C) 0.390
• D) 0.820
• E) 0.500

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Definitions:

Perfect Competition

A market structure characterized by many buyers and sellers, homogenous products, and the free entry and exit of firms, leading to price takers.

Marginal Product

The additional output generated by employing one more unit of a certain input, such as labor or capital.

VMPL

The Value of Marginal Product of Labor, which is the additional value created by employing one more unit of labor.

Profit-maximizing

The process by which a firm determines the price and output level that generates the most profit.