Bayes' Theorem Is a Method Used to Compute __________ Probabilities

question 31

Multiple Choice

Bayes' theorem is a method used to compute __________ probabilities.

• A)posterior
• B)conditional
• C)empirical
• D)prior

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Definitions:

Constant Costs

Costs that do not change with the level of output or activity within a certain range.

Short-run Supply Curve

A graphical representation showing the relation between the price of a product and the quantity of the product that a firm is willing and able to sell, given fixed resources.

MC Curve

A graph that shows the relationship between the marginal cost and the quantity of output produced, typically upward sloping.

Shut-down Price

The price level at which a firm ceases its operations because the revenue received does not cover the variable costs, making it financially unsustainable to continue.