For Which of the Following Values of P Is the Value

question 66

Multiple Choice

For which of the following values of P is the value of P(1 - P) maximized?

• A)P = 0.99
• B)P = 0.90
• C)P = 0.01
• D)P = 0.50

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Definitions:

Fixed Resource

An asset or input whose quantity cannot be altered in the short run for the production of goods and services.

Explicit Costs

Direct, out-of-pocket payments for inputs or resources used by a business, easily identifiable and recorded.

Entrepreneurial Talent

The unique set of skills, insight, and intuition possessed by individuals that enables them to identify and exploit new business opportunities.

Forgone Interest

The potential interest income lost when capital is invested in one project instead of being deposited in a savings account or invested in an alternative project.