Suppose That on the Leeward Side of the Island of Oahu

question 35

Multiple Choice

Suppose that on the leeward side of the island of Oahu, in the small village of Nanakuli, about 30% of the residents are of Hawaiian ancestry. Let 1, 2, 3,… represent the number of people you must meet until you encounter the first person of Hawaiian ancestry in the village of Nanakuli. Compute the probability for 2. Round your answer to the nearest ten thousandth. $n =$ $n \geq$

• A)0.6900
• B)0.1000
• C)0.0900
• D)0.7000
• E)0.3480

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Definitions:

Diseconomies of Scale

A phenomenon that occurs when a company or business grows so large that the costs per unit increase.

Total Cost

The sum of all expenditures incurred in the production of goods or services, including fixed and variable costs.

Diseconomies of Scale

The phenomenon where production costs increase as a firm's output expands, leading to inefficiencies.

Long-Run Average Total Cost

The average cost per unit of output when all factors of production, including capital, are variable in the long term.